Mumbai (Maharashtra) [India], August 18 : Retail demand for corporate bonds has been witnessing positive growth since the launch of online bond platforms, Sameer Patil, Chief Business Officer (CBO) at National Securities Depository Limited (NSDL), said in an exclusive conversation with ANI on the sidelines of the Great Indian Bond Festival at National Stock Exchange in Mumbai on Tuesday.
Patil said online bond platforms have helped support the growth in demand accounts, although greater awareness about the corporate bond market will be needed for this trend to spread across the country.
"Since OBPP (Online Bond Platform Provider) platforms were launched, we are seeing very positive growth as far as demand accounts," Patil said.
He, however, noted that it would take some time for the benefits of online bond platforms and awareness of corporate bonds to reach investors across the country.
"Definitely it will take some time though for this to go to the length and breadth of the country for the awareness on corporate bond markets, but definitely it is seeing a positive growth," he said.
Online Bond Platform Providers (OBPPs) provide retail investors with online access to the bond market, making it easier for them to participate in corporate bonds.
Patil said the growth in retail participation would also require wider awareness about the corporate bond market across different parts of the country.
On the question of whether depository infrastructure is prepared for a possible increase in small-ticket bond transfers, including bonds with a Rs 1,000 ticket size, Patil said NSDL would be ready if such a regulation is introduced.
"As and when there will be any regulation of that sort, the depositors will always be ready to serve the nation," he said.
Patil also said OBPPs can provide retail investors with easier access to the bond market. "OBPP platform, basically it's an online bond platform, and it will provide easy access to all the retail investors to come forward and participate in the bond market," he said.
On the role of technology in securing custody and settlement for Securitised Debt Instruments, Patil said NSDL would continue to invest in technology and cybersecurity.
Patil also highlighted NSDL's efforts to increase awareness and promote bond adoption across the country, including in Tier-2 and Tier-3 cities.
He said the depository conducts various programmes for investor awareness across the country and would continue such initiatives.