India's Merchant Bankers Seek SEBI Approval for Greater Funding Flexibility and Trading Platform

India's merchant bankers have requested the Securities and Exchange Board of India (SEBI) to allow borrowing against bonds to enhance underwriting capacity and manage risks amid weak debt demand. They also seek permission to raise funds through banks, non-banking financiers, and capital markets, and propose an anonymous trading platform to improve liquidity and price discovery. These changes aim to align their flexibility with primary dealers in the sovereign bond market and support the growth of India's corporate bond market, which faces low liquidity and high transaction costs.