Kamlesh Shroff Backs SEBI Actions to Boost Bond Market

Kamlesh Shroff, President of the Association of National Exchanges Members of India, endorsed the Securities and Exchange Board of India for taking penal action against market entities involved in price manipulation. Speaking at the ASSOCHAM IX National Summit & Awards on Corporate Bond Market in Mumbai, Shroff stated that these penalties send a strong signal regarding market integrity and suggest the regulator is monitoring exchange activities through a microscope.

Shroff called for increased retail participation to improve liquidity and price discovery in the corporate bond market, which remains dominated by institutional investors. He noted that while India's equity investment culture has flourished over the last three decades, the debt market has lagged. To bridge this gap, he advocated for the use of technology-led tokenization and Online Bond Platform Providers to allow retail investors to buy smaller portions of assets.

Additionally, Shroff supported SEBI's Fixed Income Channel Partners framework and the introduction of a riskometer concept. These initiatives are designed to help investors better assess debt ratings and credit risks, further widening the market's breadth and depth.