In India, all three groups—insurance companies, pension funds, and retail investors—are permitted to trade in corporate bonds and government securities, contributing to a diverse and liquid market environment. Insurance companies and pension funds typically invest in these securities to match their long-term liabilities and ensure stability, while retail investors gain access to corporate bonds and government securities to diversify their investment portfolios and potentially earn higher returns compared to traditional savings instruments. This inclusivity fosters capital market development and enhances financial inclusion, aligning with broader economic growth objectives as emphasized in the UPSC syllabus on Indian Economy.