Niti Aayog is working on proposals to deepen the corporate bond markets to achieve an alternative to bank finance for borrowers, the government think tank said in its Annual Report 2023-24. The corporate bond market, seen as an alternative to bank finance for borrowers, helps companies to raise long-term funds at competitive costs. "The vertical is in the process of developing a holistic research buttressed with key policy recommendations to deepen the corporate bond markets to achieve an alternative to bank finance for borrowers," it said. The report said corporate bond markets are an efficient cost-minimisation process for long-term funding and contribute significantly to financial stability. "It is a mechanism for supporting the bank for long-term lending against relatively shorter-tenor liabilities and helping the insurance companies and pension fund holders to diversify their portfolios while spreading or distributing the risks and managing the liquidity gap," it added. The .