The NSE request for a quote (RFQ) platform crossed volume of Rs 1.65 lakh crores in September, hitting a new all-time high, according to the data from National Stock Exchange (NSE). The number of trades also touched at a record high at 1.36 lakh, the data showed.
Key drivers behind the record surge
“With fewer options in a low-rate environment, investors are seeking better opportunities. Another key reason is the active push from OBPP (Online Bond Platform Providers), along with the developing ecosystem, is creating strong market momentum,” Sanjeev Kumar, co-CEO, BondVue – a Sebi registered OBPP.
While institutional investors remain the main participants in the debt market, recent volume growth has been supported by greater activity from high-net-worth individuals and retail investors, he added.
Regulatory push
RFQ was introduced in 2020 as a trade execution platform, providing a transparent and efficient way for investors. It enables investors to trade bonds by seeking quotes from several dealers and selecting the most favorable offer. Following Sebi’s 2023 directive, participants can now leverage SEBI-registered brokers to execute trades. It offers all debt products from corporate bonds to government securities.
The regulations are also a factor for higher volume. “Sebi mandate mutual funds and insurers to have a specified percentage (25%) of their total secondary market trades in corporate bonds through RFQ platform. This has played a significant role in further pushing up the volume,” said Suresh Darak, co-founder, Bondbazaar.
So far in the current financial year, 5.74 lakh trades have happened at value of Rs 7.44 lakh crore. In FY25, the volume was Rs 10.16 lakh crore with 1.96 lakh traded compared to 37,251 trades valued at Rs 7.47 lakh crore in FY24.