SEBI outlines plans for corporate bond liquidity and credit risk tools

The regulator highlighted several initiatives targeting the corporate bond segment. SEBI is drafting a market‑making framework intended to boost liquidity in the bond market and to encourage greater use of the repo market for funding. A consultation is under way for a Fixed Income Channel Partner model that would enable regulated online platforms to connect retail investors directly with bond issuers.

To help investors gauge credit risk, SEBI is also considering a “Credit‑Risk‑O‑Meter” tool that would rate the risk profile of various debt instruments. The proposed system aims to improve transparency, support better pricing and facilitate more informed investment decisions in the fixed‑income space.