Mumbai, Oct. 27 -- India's capital market regulator has proposed allowing companies to offer special incentives to specific investor groups to boost retail participation in the corporate bond market.

In a consultation paper issued on Monday, the Securities and Exchange Board of India (Sebi) recommended incentives such as a high coupon rate or discounted prices for certain categories of investors, such as senior citizens, women, armed forces personnel, and retail subscribers.

The proposal aims to reverse the decline in public debt issuance, which fell from Rs.19,168 crore in 2023-24 to Rs.8,149 crore in 2024-25.

This is not the first time investors will be incentivized to participate in the Indian markets. The regulator permitted discou...