
NSDL (National Securities Depository Limited) is building a dedicated digital platform to make selling corporate bonds easier and faster for retail investors, addressing long-standing liquidity challenges in the bond market.
Current process for selling bonds is slow and cumbersome, often requiring physical Delivery Instruction (DI) slips and taking 3–7 days for transfers between depository participants, which has limited retail participation.
The new platform will allow instant verification and blocking of securities when a sell order is placed, reducing uncertainty about whether the seller actually holds the bonds.
NSDL is developing this system in line with SEBI’s directive to launch a bond-selling platform by Q4 of FY26, and it is working with bond broker groups to incorporate practical market feedback.
Two application programming interfaces (APIs) have already been rolled out: one to retrieve client demat details securely, and another to receive debit mandates after trade execution — key infrastructure steps toward the full platform launch.
Improved liquidity: Easier, faster bond exits can boost secondary market activity and potentially attract more retail capital into corporate bonds.
Reduced friction: Removing paperwork and delays will make bond trading more accessible, broadening participation beyond institutional investors.
Stronger market infrastructure: This initiative reflects ongoing financial market modernization, which can support confidence in fixed-income investing.
Overall, NSDL’s bond platform could be a significant step toward deepening India’s corporate bond market and enhancing investment options for retail participants.
Source: https://www.financialexpress.com/market/nsdl-building-bond-selling-platform-4092819/
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