Without reforms, investor demand for corporate bonds may fall by Rs 3-4 trn

The supply of corporate bonds could rise to Rs 55-60 trillion by the end of 2022-23 from around Rs 27.4 trillion at the end of 2017-18

The overall supply of corporate bonds, which was around Rs 27.4 trillion at the end of 2017-18, could double to Rs 55-60 trillion by the end of 2022-23, especially with issuances by financial sector and infrastructure companies. However, without adequate reforms, regulatory push, government initiatives and an expansion of the debt market to introduce new instruments like credit default swaps (CDS), there is likely to be a demand gap of Rs 3-4 trillion, says a report by rating agency CRISIL.

“To structurally bridge the demand-supply gap, we need a big step-up in investor awareness, better coordination across the ecosystem, continuation of