New Delhi, Feb. 1 -- The Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI), the bond market regulators in India, and the government have been taking various steps to strengthen the country's bond market. In continuation of these steps, Finance Minister Nirmala Sitharaman announced new measures in the Union Budget 2026 to strengthen the bond market further and encourage more investors to participate.

Let us understand some of these announcements.

The government will introduce a market-making framework to improve liquidity in the corporate bond market. The market making is done by intermediaries that provide buy and sell quotes for bond market securities.

In a market with limited liquidity, a buyer faces d...