SEBI Chairman Outlines Plan to Deepen Infrastructure Financing

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey announced a strategy to deepen India's securities market to complement government spending and bank credit for national infrastructure. Speaking at the NaBFID Annual Infrastructure Conclave on September 17, 2026, Pandey described the securities market as an important part of the infrastructure financing ecosystem that provides risk capital during early project stages and refinancing once operational.

To support urban development, SEBI is encouraging municipalities to pool financing needs and issue collective bonds. This initiative targets an infrastructure requirement estimated between 82 trillion and 86 trillion rupees by fiscal year 2031, focusing on potable water, sewage, and road projects. Pandey noted that while 22 urban local bodies raised over Rs 4,500 crore through 31 issuances by the end of FY26, the municipal bond market still represents less than 1% of total rupee bond sales. He stated that future growth depends on improving municipal governance, transparent disclosures, and creditworthiness.

Pandey also highlighted the growth of the corporate bond market, which rose from Rs 20 trillion in FY16 to Rs 61 trillion by August 2026. To further this growth, SEBI lowered the electronic book mechanism threshold from Rs 50 crore to Rs 20 crore and is piloting tokenised corporate bonds. Additionally, Pandey warned retail investors about the risks of derivatives trading, noting that many continue to suffer losses in the futures and options segment even after several years of trading.