The latest episode of Bond Street, presented by CNBC-TV18 and IndiaBonds, clearly showed that this gap has significantly narrowed. The panel included Rajeev Radhakrishnan, CIO of Fixed Income at SBI Funds Management Limited; Amit Tripathi, President and CIO of Fixed Income Investments at Nippon India Mutual Fund; and Kaustubh Gupta, CIO of Fixed Income at Aditya Birla Sun Life AMC Limited. Throughout the discussion, one recurring theme emerged: the market has become much more transparent, the underlying infrastructure is stronger, and investment participation now largely depends on whether investors understand what they are seeing.
Kaustubh Gupta notices a big difference from the past. Bond markets used to be mostly over-the-counter, with inconsistent information flow, delayed settlements, and limited access. Now, investors have many options to buy bonds, such as OTC channels, online platforms, and capital market systems. Information about bond issues is shared ahead of time, transactions are smoother, and settlements are easier. In many ways, the bond market has become more convenient for investors, similar to what they’re used to with stocks, even though the market still functions differently in some ways.
Amit Tripathi highlighted how corporate bond repo is becoming an increasingly important part of the financial landscape. He’s recognised that liquidity in the secondary market for corporate bonds has been a long-standing challenge, but with a well-functioning repo ecosystem, there’s great potential to improve this. It could make it easier for everyone to hold, finance, buy, and sell these bonds smoothly. Amit also emphasised how crucial transparency is in this process. As more issuance and trading move online and onto electronic screens, investors can see the pricing more clearly, helping them make more confident decisions. When the market is open about how it operates, it’s more inviting for a wider range of participants to get involved.
Rajeev Radhakrishnan highlighted progress in three key areas: infrastructure, regulation, and transparency. Over the years, settlement systems have seen remarkable improvements. Regulations have become stricter, particularly around disclosures and protecting investors. Additionally, trade reporting and price visibility have gotten better. For those not involved in the traditional OTC market, this development is especially significant. It means access is no longer just about being close to the market’s inner circles. Instead, it’s becoming more system-driven, transparent, and easier for everyone to navigate.
That does not mean participation will deepen automatically. Tax implications still influence investor behaviour. For many small investors, after-tax returns impact decision-making more than theoretical asset allocation concepts. Communication also poses a challenge. Fixed-income products frequently come with overly technical language, particularly in mutual funds. Tripathi’s practical insight was that investors don’t need to understand every category label initially. Instead, they should focus on their time horizon, what they expect from the experience, and how a product fits into their portfolio.
The market situation also brings a warm sense of urgency to our discussion. After the Union Budget and the Reserve Bank’s latest monetary policy, fixed income investments have come into sharper focus. Large borrowing plans, inflation that stays much more controlled than in many other major economies, and clear real yields have made the bond market more approachable. Gupta sees the near-term outlook as cautiously optimistic. In his view, India’s macro fundamentals still look strong. The main concern seems to be supply dynamics, especially at the longer end of the curve, where demand hasn’t always kept up with issuance.
Radhakrishnan’s view is simpler and more straightforward. Current yield levels across certain parts of the market remain attractive enough so that investors might consider maintaining a reasonable portion of their portfolio in fixed income. This argument feels even more relevant now, as diversification becomes more important and as cash flow, stability, and real returns are becoming serious topics of conversation.
The discussion on Bond Street really shows how much the market has improved. The infrastructure is now stronger, transparency has gotten better, and access isn’t the obstacle it used to be. The next step is helping investors understand more. To grow a deeper bond market, we’ll need more participants, but also investors who can confidently assess risks, interpret yields, and fit fixed income properly into their financial plans. That’s probably where the bond conversation will head next.
Watch Bond Street on CNBC-TV18, CNBC Awaaz and CNBC Bajar for daily market updates and deeper conversations on India’s evolving fixed income landscape. Episodes are also available on CNBC-TV18’s digital platforms.
