Visit of Mr. Ajay Tyagi, Former Chairman, SEBI to NISM Patalganga Campus

Mr. Ajay Tyagi, Former Chairman, SEBI [and former Chairman of NISM Board of Governors] visited NISM Patalganga Campus on 25th and 26th August 2022. On Thursday August 25, 2022 he addressed the Faculty Members, Students and SEBI Trainee Officers during the Leadership Lecture Series12 on the topic “ Development of Bond Markets”. He covered the whole gamut of issues relating to the limited growth of the bond market despite India having a world class equity market. While underlining the importance of the bond market, he spoke on the challenges that the Indian bond market faces, such as a dual regulatory structure, and the steps that have been taken to improve the Indian bond market.

Mr. Tyagi has suggested the unification of the bond markets viz. government securities (G-Secs) and corporate bonds for “economies of scale and scope”. Unifying these two markets would enable seamless transmission of pricing information from G-Secs to corporate bonds. It would lead to the removal of artificial segmentation of investors. The unification of the regulatory structure for trading, clearing, and settlement of corporate bonds and G-Secs will result in increasing market competition, innovation, and efficiency. This will also lead to increased liquidity in corporate bonds and G-Secs. There is a need to harmonize the rules of ownership, governance, risk management, and compliance of Market Infrastructure Institutions as well as the mechanism of trading, clearing and settlement across the platforms and product class for all types of securities in the financial markets. This will make it possible to trade these types of securities on the same platform and will allow utilization of the common infrastructure for trading, clearing, settling, and holding securities.

 Mr. Tyagi observed that the recent uptick in the participation of individual investors in equity market activity presents an opportunity to capitalize on the investment potential of retail investors in the bond market as well.

On Friday August 26, 2022, Mr. Tyagi addressed the Officer Trainees of SEBI Induction Programme and thereafter had an interaction with faculty members of NISM.

The students, faculty and the SEBI Officer Trainees have benefitted immensely from these interactions.