Definition
Bond Investing Platforms
Bond investing platforms are SEBI-regulated online avenues, including Online Bond Platform Providers, that let retail investors buy listed corporate and government bonds in small lots.
Bond investing platforms have made it easier for individuals to buy bonds that were once accessible mainly to institutions. SEBI's Online Bond Platform Provider (OBPP) framework regulates entities offering listed debt securities to retail investors, improving transparency and investor protection.
Investors can browse bonds by issuer, yield, rating and tenure, and buy in smaller denominations than the traditional large lot sizes. Returns come from coupon (interest) plus any price change if sold before maturity.
Key risks include credit risk (issuer default), interest-rate risk and liquidity. Checking credit ratings and understanding yield-to-maturity is essential before investing through these platforms.
Related terms
- RBI Retail DirectRBI Retail Direct is a scheme that lets individual investors directly open an account with the RBI to buy and hold government securities without an intermediary.
- Corporate FDA corporate fixed deposit is a deposit with a company or NBFC offering a fixed interest rate, usually higher than bank FDs, but without bank-style deposit insurance.
- NCD Public IssueA Non-Convertible Debenture public issue is a company's offer of debt securities to the public that pay fixed interest and return principal at maturity, without converting into shares.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.