Some of these issues include: •  The corporate bond issuance is dominated by private placements as these account for more than 95% of the total issuance of corporate debt (2014–15);  •  Issuances are concentrated in the AA or above rating, largely by public sector entities and financial institutions  •  A majority of the issuances are concentrated in the 2–5 year tenor;  •  Limited/narrow investor base.
Investment mandates of institutional investors such as insurance companies, pension funds and provident funds do not permit large investment in corporate bonds;  •  Reissuance of bonds has not picked up;  •  Lack of functional trading platform with CCP facility like NDS-OM (as available in Government securities market) impedes the growth of secondary market;  •  Market for credit risk protection instruments like CDS has not yet developed;  •  Non-standardized stamp duties on corporate bonds across various states affects issuances.