Budget 2026: Corporate Bond Proposals to Boost Debt Market, Experts Say

• Finance Minister Nirmala Sitharaman proposed a market-making framework and new derivative instruments for the corporate bond market in Budget 2026.
• Measures include Total Return Swaps on corporate bonds to enhance risk management and liquidity in the secondary market.
• Experts like Venkat N Chalasani (AMFI) and Priyashish Das (Northern Arc Securities) view these proposals as a significant step to improve depth and liquidity.
• Sankar Chakraborti (Acuité Ratings & Research) noted that increased liquidity will improve price discovery, refinancing ease, and market resilience.
• The Economic Survey highlighted the need for a unified trading platform, expanded investor base, and addressing regulatory overlaps to further develop the market.

Why It Matters: Budget 2026 proposals for corporate bonds are set to significantly enhance India's debt market liquidity and stability.