It is encouraging to see the clear focus on corporate bond market development through the proposed market-making framework and the introduction of total-return swaps in corporate bonds.
FinTech BizNews Service
Mumbai, 1 February 2026: Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget 2026-27 in Parliament on Sunday 1 February 2026, said that the Government led by Prime Minister Narendra Modi, has decisively and consistently chosen action over ambivalence, reform over rhetoric and people over populism.
Smt. Nirmala Sitharaman said that the non-debt receipts and the expenditure in 2026-27 are estimated as Rs36.5 lakh crore and Rs53.5 lakh crore respectively. The Centre’s net tax receipts are estimated at Rs28.7 lakh crore. To finance the fiscal deficit, the net market borrowings from dated securities are estimated at Rs11.7 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at Rs17.2 lakh crore.
A notable tax proposal is the move to raise STT on Futures to 0.05 percent from present 0.02 percent. STT on options premium and exercise of options will also be raised to 0.15 percent from the present rate of 0.1 percent and 0.125 percent, respectively.
Recognising MSMEs as a vital engine of growth, a dedicated Rs10,000 crore SME Growth Fund was proposed to create future Champions, incentivizing enterprises based on select criteria.
Venkat N Chalasani, Chief Executive, AMFI, believes: “The Union Budget 2026 underscores a steadfast commitment to deepening India’s capital markets and strengthening the role of long-term savings in driving economic growth.
AMFI has consistently emphasized that a vibrant and expanding debt market provides both corporates and the government greater funding flexibility, while ensuring efficient deployment of India’s deep savings pool. It is therefore encouraging to see the clear focus on corporate bond market development through the proposed market-making framework and the introduction of total-return swaps in corporate bonds. These initiatives will significantly enhance depth, liquidity, and risk management in the bond market.
Alongside the push for REITs, overseas investment avenues, and improved financing access for MSMEs, these measures will further enable the mutual fund industry to channel household savings into productive assets. Collectively, they will support capital formation and help advance the three ‘kartavyas’ articulated by the Hon’ble Finance Minister.”
