Firms opting for private placements, rather than issuing bonds in public

The main reason for this is the near absence of NBFCs from the market.

Companies are opting for private placements, rather than issuing bonds in public. In any case, private placements used to dominate the corporate bond space, but this seems to have become the norm now as companies are not getting money from the bond market easily. 

Considering more than 70% of the market is dominated by non-banking financial companies (NBFCs) struggling to raise funds from the market, this finding by CARE Ratings is not surprising.

The rating agency took the data from various sources, and found that private placements in the first half of FY20 was Rs 2.5 trillion