Corporate bond market experiences remarkable expansion on momentum in private placements
bonds. “In FY '22-23, private placements garnered an impressive ₹7.5 lakh crore (USD 94 billion), and in the current fiscal year, FY’23-24, we have already witnessed a substantial raise of ₹4.15 lakh crore (USD 52 billion) by October. It's to be noted that this strong momentum includes obtaining money through private placements," said Abhijit Roy, CEO, of GoldenPi.
As per Abhijit Roy, pivotal developments are poised to shape the landscape into FY’24-25. “SEBI's initiative to reduce the ticket size from ₹10 lakh to ₹1 lakh since January 1, 2023, fosters increased retail investor participation which has increased from a mere 0.7% in FY '22 to 2% in FY' 23 and is currently at 4% with the potential for further the positive outlook for further increase in the very near future," Roy said. As per CEO, GoldenPi.
SEBI's comprehensive framework for bond settlements in the secondary market via the RFQ route ensures heightened safety and security for retail investors. Simultaneously, the central government's asset monetization program, in which the PSUs raise substantial funds for national development through the NCD IPO route, anticipates continued active retail participation. Anshul Gupta, co-founder and chief investment officer, Wint Wealth said there is still a lot of scope to increase the participation of retail investors in the corporate bonds space while protecting their interests.
For example, the ticket size of privately placed corporate bonds is still much higher than what more retail investors can afford. He emphasised on the need for a smaller ticket size of privately placed bonds for retail investors. On November 20, Reuters reported that Reliance Industries Ltd (RIL), is considering its maiden bond issue with a plan to
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