DEBT MARKET IN INDIA

• The domestic debt market in India amounts to 67% of GDP

• The size of India’s corporate bond market is a mere 16% of GDP

• As compared, 46% in Malaysia, and 73% in South Korea.

• In the past few years, the domestic corporate bond market had
seen increasing volumes, largely due to financial investments
going into it, including retail participation.
KEY PLAYERS IN THE BOND
MARKET
• Bond Issuers
The issuers sell bonds or other debt instruments in the bond market to
fund the operations of their organizations. This area of the market is
mostly made up of governments, banks, and corporations.
The biggest of these issuers is the government!

• Bond Underwriters
The underwriting segment of the bond market is traditionally made
up of investment banks and other financial institutions that help
the issuer to sell the bonds in the market.
• Bond Purchasers
Are those who buy the debt that is being issued in the market.
They basically include any type of investor, including the individual.
Governments play one of the largest roles in the market because they borrow
and lend money to other governments and banks.

• Other Participants
Credit rating agencies assess the issuer’s credit rating, a key indicator of the
issuer’s credit health.
 Legal counsel drafts and files legal documents and provides the issuer with legal
advice through the issuing process. 
Settlement agent is responsible for completing a transaction between a buyer
and seller of securities.