Mumbai, Feb. 1 -- Positive market sentiment followed the union Budget announcements as the government unveiled a series of capital-market reforms aimed at improving liquidity, broadening investor participation and enhancing price discovery across debt and equity segments.
A key announcement is the proposed market-making framework for corporate bonds, intended to address long-standing concerns over shallow secondary-market liquidity. The framework will allow designated market makers to access funding and bond-linked derivatives, potentially narrowing bid-ask spreads and improving tradability.
Alongside this, the introduction of total return swaps is expected to widen investor participation by enabling exposure to bond returns without the n...