Sebi Chairperson Madhabi Puri Buch Envisions Tech-Driven Growth for Corporate Bond Market

Sebi Chairperson Madhabi Puri Buch expressed optimism that technological advancements and transparency will drive rapid growth in the corporate bond market, akin to the equities segment. Addressing mutual fund industry representatives, she highlighted the need for increased secondary market activity and detailed new initiatives to democratize investments.

Sebi Chairperson Madhabi Puri Buch on Thursday emphasized the critical role of technological advancements and transparency in propelling the corporate bond market to grow as swiftly as the equities market. Speaking at the annual general meeting of Amfi, Buch noted that primary market activity in corporate bonds is robust, with issuances surpassing Rs 8.50 lakh crore in FY24. However, she pointed out a lack of dynamism in the secondary market.

She expressed hope that recent trends in transparency and technology will spur the bond market's growth. Buch, facing allegations of impropriety, briefly addressed potential conflicts involving Real Investment Trusts and ICICI Bank, while denying all accusations against her by Hindenberg Research and the Congress party.

Additionally, Buch highlighted the success of the newly launched corporate bond repo facility, which has seen monthly volumes of Rs 20,000 crore. She also mentioned Sebi's efforts in aligning disclosure requirements for private and public bonds. In the equity IPO sector, Buch noted no application remains pending for over three months.

Buch encouraged the mutual fund industry to more actively employ stewardship code provisions to amplify retail investors' voices. She further announced forthcoming 'MF Lite' regulations and an essay competition involving innovative use of AI applications like ChatGPT.

(With inputs from agencies.)