Mumbai, May 27 -- Securities and Exchange Board of India Chairman Tuhin Kanta Pandey said the regulator is working on developing bond exchange traded funds (ETFs), derivatives linked to corporate bond indices and a market-making framework to improve retail participation and liquidity in India's debt market.

Speaking at an event in Mumbai on Tuesday, Pandey said SEBI is also exploring a separate regulatory classification for debt brokers to reduce costs and encourage specialised intermediaries in the bond market.

He added that SEBI is examining a pilot project for tokenisation of corporate bonds to enable faster settlement, improved traceability, automated servicing and greater transparency in the debt market.

Pandey said India's corpor...