• NBFC funding diversification: NBFCs are increasingly tapping the bond market to improve asset-liability management, lock in longer-tenure financing, and capitalize on faster interest rate transmission compared to traditional bank channels.
• REITs market expansion: REITs and InvITs have scaled their managed assets to over ₹10 lakh crore over the last 8 to 9 years, delivering average returns above 15% and lowering financing costs by 50 to 75 basis points through bond issuances.
• Retail investor participation: Retail participation in bond issuances rose from 2% to 5% in H1 FY26, aided by SEBI lowering the minimum investment ticket size from ₹1 lakh to ₹10,000 and tapping into savings from Tier 3 and Tier 4 regions.
• Secondary market liquidity: Despite total annual bond issuances reaching ₹13.5 to ₹14 trillion, market maturity remains constrained by secondary market illiquidity and high concentration in AAA and AA-rated papers, highlighting the need for investor education before introducing complex derivatives.