The Securities and Exchange Board of India (SEBI) is collaborating with the Reserve Bank of India (RBI) to introduce derivatives on corporate bond indices, a move aimed at enhancing liquidity and price discovery in India's debt market. This initiative was announced by SEBI Chairman Tuhin Kanta Pandey during his keynote address at the ICICI Securities India Investor Confidence event. The collaboration is part of broader reforms in the corporate bond market architecture, which includes expanding the electronic book provider platform to improve transparency. The RBI has already provided draft guidelines for total return swaps and derivatives, which are in the finalization stage. Additionally, SEBI is easing regulatory requirements for foreign portfolio investors (FPIs) to facilitate access to government securities and corporate debt. This includes standardized forms and digital processes for FPI registration. Tax exemptions and the removal of certain investment limits are also being implemented to attract more capital. With corporate bond issuances expected to surpass ₹9 trillion, the introduction of derivatives is seen as a tool for better risk management and investment allocation, ultimately fostering a more efficient and accessible market.