$60 Trillion Bond Market: The Rise of Retail Investors | Dinesh Khara - SEBI CoBoSAC
What will it take to make India’s corporate bond market deeper, more liquid, and more accessible to retail investors?
In this episode of Bond Street, presented by IndiaBonds and CNBC TV18, we sit down with Mr. Dinesh Kumar Khara, Chairperson of the Corporate Bonds and Securitization Advisory Committee, CoBoSAC, established by the Securities and Exchange Board of India, SEBI, for a deep dive into the future of India’s corporate bond market.
Drawing on his experience as the former Chairman of State Bank of India and now as the Chairperson of a key SEBI advisory committee, Mr. Khara explains why India needs greater depth and liquidity in its corporate bond market, why the market continues to be largely driven by institutional investors and buy and hold strategies, and what could help bring a wider base of retail investors into bonds.
From financing India’s long term infrastructure requirements to creating liquidity across different credit ratings, the conversation explores the role of banks, pension funds, insurance companies, private capital and Online Bond Platform Providers in developing the market. Mr. Khara also discusses the importance of educating retail investors about credit risk, liquidity risk and tenor risk, and why access and exit opportunities need to evolve together.
The conversation concludes with a practical perspective on portfolio diversification and how equity, bonds and bank deposits can each play a different role depending on an investor’s liquidity needs and financial goals.
Topics covered: corporate bond market India, CoBoSAC, SEBI corporate bonds, bond market liquidity, retail bond investing, corporate bond market development, infrastructure financing, Online Bond Platform Providers, OBPPs, credit risk, liquidity risk, bond investing, portfolio diversification, fixed income investing, State Bank of India, Dinesh Kumar Khara