Investors have stayed away from the fixed income secondary market as the

market lacks liquidity, transparency and depth, Preference to bank deposits,

postal savings schemes, NSCs, Small institutional investor base, Lack of
adequate risk management products.
For developing Indian Debt Market the following steps can be improved upon:
Broadening of Investor base, Increasing the issuer base, Development of
derivatives market, Market making, Addressing Price Distorting Issues, Listing
Norms To Be Eased, Developing A Trade Reporting System, Trading, Clearing And
Settlement Mechanism, Specialized Debt Funds For Infrastructure Financing,
Developing A Market For Debt Securitization. Irrespective of the problem, The
Indian Debt Market is posed to be as the Fastest Growing Market in the coming
decade.