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NITI Aayog Push for Reforms in Corporate Bond Market — What It Means for Retail Investors

NITI Aayog is pushing for major policy changes and tax benefits to expand India’s corporate bond market from ₹45 lakh crore to ₹120 lakh crore.

Here’s how this helps retail investors:

🔹 More High-Quality Bond Options
Reforms will encourage more companies to issue bonds, giving retail investors better and safer issuers to choose from.

🔹 Possible Tax Benefits Ahead
Recommended tax incentives can make corporate bonds more attractive than FDs by improving post-tax returns.

🔹 Stronger Safety & Transparency
Upgrades to settlement systems, disclosures, and regulations will reduce risks and create a more reliable bond ecosystem.

🔹 Higher Liquidity
A larger market means easier buying and selling of bonds, solving the current liquidity issue for retail investors.

🔹 Easier Access & Better Awareness
Push for investor education and simpler access channels will make bond investing more retail-friendly.

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