ETMarkets Smart Talk | As FD rates soften, AAA PSU and corporate bonds are gaining traction: BondScanner CEO

BondScanner CEO Nishchay Nath said AAA-rated PSU and corporate bonds are gaining traction as fixed deposit rates soften, with the repo rate at 5.25 percent after the RBI's December cut. SEBI's progressive reforms, including cutting minimum bond face value from 10 lakh to 1 lakh in 2022 and then to 10,000 under the OBPP framework, are enabling retail participation, which BondScanner says has grown 80x on its platform. The RBI has also unveiled draft rules allowing short positions in government securities and a framework for when-issued trading, open for public feedback until July 17, aimed at boosting liquidity and price discovery.