Online bond platforms made corporate bonds buyable in small amounts. They did not make the credit risk smaller. That distinction is the whole of this page.
Since SEBI’s circular of 14 November 2022, an entity running an online bond platform for the public must register as a stock broker in the debt segment of a recognised stock exchange. It may offer only listed debt securities, and securities proposed to be listed through a public issue. Unlisted paper is off the menu.
SEBI publishes the registered lists itself. We link to them rather than reproduce them, because registrations are added and removed and a stale list here could cost somebody money.
How do you check a platform is actually registered?
- Open SEBI’s Online Bond Platform Providers page. It carries the current lists of OBPPs registered with NSE and with BSE.
- Find the legal entity name, not the brand name. Platforms trade under a brand and register under a company name.
- Check the same entity on the exchange’s member list.
- Confirm the platform’s own website names the registered entity and its registration number in the footer or the terms.
If a platform will not tell you the legal entity behind it, that is the end of the assessment. Registered brokers state it plainly.
What should you look at before buying a bond?
| What to check | Why it matters | Where to find it |
|---|---|---|
| Credit rating and rating agency | The market’s price of default risk | Rating rationale on the agency’s site |
| Rating outlook and recent changes | A downgrade path matters more than the letter | Rating rationale, dated |
| Secured or unsecured | Decides where you stand if the issuer fails | Offer document, security clause |
| Yield to maturity versus coupon | YTM assumes you hold to maturity and get paid | Platform listing, and the offer document |
| Issuer’s business, not just the rating | A rating is an opinion, not a guarantee | Annual report and financials |
| Liquidity in the secondary market | Most retail corporate bonds trade thinly | Exchange trade data for that ISIN |
| Call and put options | An issuer call caps your upside | Term sheet |
| Taxation of the interest | Interest is taxed at your slab rate | Income Tax Act |
What is the ticket size now, and why does it matter?
SEBI reduced the permitted face value of privately placed debt securities from ₹1,00,000 to ₹10,000 on 3 July 2024. Conditions apply: the issuer must appoint at least one merchant banker, and the security must pay a coupon at regular intervals with a fixed maturity.
That change is why these platforms became retail products. It is also the reason to be careful. A smaller ticket does not change the issuer’s balance sheet. It only changes how much of your portfolio a single default takes out.
The uncomfortable part about high-yield listings
A bond listing at 12% is not a fixed deposit paying 12%. It is a lender’s return on a borrower the bond market prices as risky. That is what the yield is telling you.
Three things routinely get lost. First, the yield is pre-tax, and interest is taxed at your slab rate. In the 30% bracket a 12% coupon is about 8.4% after tax. Second, the yield assumes the issuer pays every instalment on time. Third, if you need to exit early, retail corporate bonds trade thinly and you sell at whatever bid exists.
Compare honestly against alternatives that carry sovereign or bank risk. Government securities and RBI floating rate bonds carry sovereign risk. Corporate FD rates sit in a similar risk band and are worth reading alongside this. Debt funds spread the credit risk across many issuers, which single bonds do not.
Who are these platforms right for?
They suit an investor who already holds an emergency fund and a core portfolio, understands that a rating can fall, and is buying a spread of issuers rather than one. They suit someone who will hold to maturity.
They are wrong for money you may need back at short notice. They are wrong as a fixed deposit substitute. And they are wrong if you are choosing by the headline yield, which is exactly how most people arrive at them.
If you want the category without single-issuer risk, read best bonds to invest and bond yields first.
Frequently asked questions
Are online bond platforms regulated by SEBI?
Yes, since the circular of 14 November 2022. A platform serving the public must register as a stock broker in the debt segment of a recognised exchange. SEBI maintains lists of the OBPPs registered with NSE and BSE on its website.
Why does this page not rank the platforms?
Because a ranking would need audited data on execution, pricing and disclosure that is not published. What is published is the registration list, and we point you at the source. A ranking built on marketing pages would be an opinion dressed as research.
What is the minimum investment in a corporate bond now?
SEBI permitted a face value of ₹10,000 for privately placed debt securities from 3 July 2024, down from ₹1,00,000. Platform minimums may be higher than the face value.
How is bond interest taxed in India?
Interest is taxed at your slab rate. Capital gains on sale are taxed separately. Compare after-tax yields, not headline coupons, especially in the 30% bracket.
Is my money safe on an OBPP?
Your securities sit in your own demat account, which is the point of the broker registration. The platform’s solvency is a separate question from the issuer’s. Neither is covered by deposit insurance. See DICGC deposit insurance for what is actually insured in India, and what is not.
Sources
- SEBI, circular dated 14 November 2022 on the registration and regulatory framework for Online Bond Platform Providers. sebi.gov.in
- SEBI, list of Online Bond Platform Providers registered with NSE and BSE. sebi.gov.in
- SEBI, circular dated 3 July 2024 reducing the face value of privately placed debt securities to ₹10,000. sebi.gov.in
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