The Securities and Exchange Board of India (SEBI) has launched a centralized database portal called Bond Central to improve transparency and facilitate access to information related to corporate bonds. This initiative is designed to establish a single, reliable source of information on corporate bonds issued in India, which will be advantageous for investors and other market participants.
Development and Collaboration
The Bond Central portal was developed through a joint effort by the Online Bond Platform Providers (OBPP) Association and Market Infrastructure Institutions (MIIs), including stock exchanges and depositories. This portal is meant to serve as a free information resource for the public.
Objectives of Bond Central
The primary goal of Bond Central is to provide a unified platform for corporate bond data, enabling investors to make informed decisions. The key objectives include:
- Enhancing transparency in the corporate bond market.
- Standardising bond-related data to reduce information asymmetry.
- Providing free and easy access to crucial financial data for the public.
- Facilitating investor comparison of corporate bonds with other financial instruments.
Key Features of Bond Central
SEBI has highlighted several critical features that make Bond Central a valuable resource:
1. Unified Data Repository
The platform provides a comprehensive and integrated view of corporate bonds across multiple stock exchanges and issuers. This ensures seamless access to data for investors and financial analysts.
2. Comparison with Government Securities (G-Secs) and Indices
Investors can compare corporate bond prices with Government Securities (G-Secs) and other fixed-income indices. This feature allows for better risk assessment and investment planning.
3. Risk Assessments and Disclosures
Bond Central provides detailed risk assessments, corporate bond documents, and issuer disclosures. This helps investors evaluate opportunities effectively and make well-informed investment choices.
4. Standardisation of Bond Data
The platform ensures uniformity in corporate bond-related data, reducing information discrepancies and fostering market trust. By streamlining data presentation, the portal enhances comparability and accessibility.
5. Free and Open Access
Unlike other financial databases that may require subscriptions or fees, Bond Central is accessible to the public free of cost. This democratizes access to essential financial information and encourages wider market participation.
Implementation and Future Enhancements
The first phase of Bond Central went live on Thursday, with SEBI confirming that additional features will be introduced progressively. Future updates will be based on stakeholder feedback, ensuring that the platform evolves to meet the changing needs of the market.
