Rule changes boost retail bond market access, says NSDL CEO

India’s retail bond market is finally expanding, and according to Vijay Chandok, MD & CEO of National Securities Depository Limited (NSDL), the real trigger is not investor awareness but regulation that made bonds investable.Explaining what changed structurally, Chandok said the turning point was the introduction of Online Bond Platform Provider (OBPP) rules. On the key catalyst, he said, “The real, compelling regulation… which has really propelled the bond market forward is the OBPP regulations.” The framework has effectively opened access to bonds, much as online platforms earlier widened participation in equities and mutual funds.

The impact is already visible in distribution.
On platform growth, Chandok stated, “We have more than 40 of them in the country now,” adding that NSDL has partnered with many of these platforms to provide digital onboarding and simplified processes for investors. He said the industry has moved toward “facilitation, paperlessness, digitalisation, information flow,” which is pushing retail participation higher.Another major hurdle earlier was the lack of transparency and investor understanding. NSDL is attempting to solve this through information access.

Also Read: How to use NSDL’s new unified digital portal for foreign investors
On investor education, Chandok said the depository provides “a plethora of information about bonds… which really helps a retail investor to understand the risks and then take an informed decision,” including yield and pricing data through its trade repository.Lower entry barriers are also bringing bonds closer to a mass retail product. Chandok pointed to SEBI’s recent policy move.

On accessibility, he said, “SEBI has brought down the minimum investment from ₹100,000 to ₹10,000. I think that’s a very positive step.” Along with growing advisor participation, bonds are increasingly being positioned as a diversification tool for retail portfolios.

He believes the market is now beginning to follow the adoption path once seen in mutual funds — digital platforms, advisors, and smaller-ticket sizes. “We are beginning to see some components of this coming to the bond market as well,” he said, adding that a conducive regulatory and interest-rate environment is supporting participation.

Despite the progress, India’s bond market remains small compared to bank financing and global peers, though it is steadily expanding.

On issuance growth, Chandok said, “Two years back, we saw the total issuances of about nine lakh crore… this year it’s likely to be eleven.” He stressed that further expansion will depend on investor education, stating bond concepts are not easy for first-time investors and “explanation is important” for wider adoption.

For the entire interview, watch the accompanying video

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