SEBI action over CAS price manipulation sends strong signal: ANMI chief; flags FICP, riskometer, bond liquidity
Regulatory reforms and technology-led platforms are reshaping India’s debt markets, but deeper participation remains essential for sustainable corporate bond growth.
Kamlesh Shroff, President of the Association of National Exchanges Members of India (ANMI), highlighted the significance of regulatory actions taken by SEBI against market entities involved in price manipulation during specific trading windows. Shroff emphasized that these actions serve as a strong signal to the market, aiming to improve price discovery across asset classes.
He also discussed the potential benefits of extending post-close trading windows, which could enhance the depth of Consolidation and Settlement (CAS) mechanisms and improve price discovery. Shroff further noted that the regulator is closely monitoring structural shifts and the adoption of initiatives such as the Fixed Income Channel Partners (FICP) framework and the riskometer concept by SEBI’s Whole Time Member, Amarjeet Singh.
He welcomed the expansion of FICPs and the riskometer, as they can help grow market awareness and provide better risk assessment tools for market participants. Additionally, Shroff commented on the growing role of Online Bond Platform Providers (OBPP) and technology-led tokenization, noting that these platforms now host a substantial number of investors and can improve market depth and breadth through fractional ownership of bonds.
However, he stressed that 95% institutional dominance creates structural challenges for the 5% retail base in terms of liquidity, emphasizing that newly introduced market platforms require time to mature and build secondary market liquidity.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
