GIFT City Bond Market: Institution-Led, Retail Access to Evolve, Says IFSCA Chief

• GIFT City's bond market is primarily institution-led, with retail access developing gradually, states IFSCA Chairman K Rajaraman.
• Bond listings, mainly from Indian corporates, began five years ago on NSE IX and India INX, raising $7 billion in FY24-25.
• Investor base includes foreign institutions, GIFT City entities, and NRIs, as resident Indians cannot invest in India-originated offshore bonds.
• IFSCA strengthened investor protection with mandatory credit ratings, disclosure of proceeds, and material information for issuers.
• Concessional 9% withholding tax benefits foreign investors/NRIs; retail access depends on liquidity, with fractionalisation and tokenisation explored.

Why It Matters: GIFT City's bond market is institution-led, focusing on institutional investors with future retail access plans.