Nithin Kamath, Founder & CEO of Zerodha, recently spoke to ET Now about the importance of attracting retail investors to the corporate bond market. Kamath believes that by keeping the base value at Rs 10,000, there will be a significant increase in retail investor participation. He also highlights the need for corporates to view retail investors as bondholders and an opportunity to enhance their brand value.

Kamath acknowledges that efforts have been made to increase retail participation in the corporate bond market, with the base value being reduced from Rs 10 lakh to Rs 1 lakh. However, he believes that even Rs 1 lakh is too high for retail investors and that a reduction to Rs 10,000 would make a big difference.

In terms of infrastructure, Kamath states that the necessary framework is already in place. He mentions that bond trading can happen on the exchange platform itself, and regulatory measures have been implemented to facilitate online bond platforms. Kamath sees the growth in retail investor participation and interest in newer products as indicators that the infrastructure is adequate.

When asked about the opportunities for digital online brokerages in the current market, Kamath acknowledges that it has been a spectacular period since 2020. However, he believes that the focus should now be on helping customers do better in terms of their investments. He highlights the challenge of keeping investors engaged and finding ways to support their financial progress.