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Business Standard
11-07-2025
- Business
- Business Standard
NSE, BSE caution investors investing through online bond platforms
The National Stock Exchange (NSE) and BSE have advised bond investors using online bond platforms to weigh the risks and returns of corporate bond investments against their credit ratings. 'Lack of awareness or understanding of these aspects can result in misjudged risks and potential capital loss. Therefore, investors are strongly advised to conduct due diligence before proceeding with any bond investment,' the exchanges said in a release. As a result, a rating-wise risk scale—similar to the mutual funds' risk-o-meter—can be considered to help investors make informed decisions. Additionally, the exchanges advised bond investors to be mindful of factors such as the bond's credit rating, the issuer's track record in timely repayments, the liquidity of the instrument, settlement timelines, and the tax implications of the investment. '…it is crucial to verify that the platform is a Sebi-registered Online Bond Platform Provider (OBPP),' the release said. The exchanges also explained that the yield to maturity (YTM)—the total annualised return an investor can expect if the bond is held until maturity—is not a guaranteed return, as it fluctuates based on factors such as changes in market interest rates, liquidity conditions, time to maturity, and the creditworthiness of the issuer. Additionally, if the bond is sold before maturity, the actual return may differ significantly from the indicated YTM. Generally, when a bond's price is below its face value, its YTM is higher than its coupon rate, and vice versa. Similarly, the exchanges cautioned investors that the coupon rate—the fixed annual interest paid by the issuer—is not risk-free and is dependent on the financial health and credit reliability of the issuer. Any delay or default in payments can adversely affect investor returns.
Economic Times
11-07-2025
- Business
- Economic Times
NSE, BSE issue advisory to bond investors. Here are 10 things to know
Stock exchanges BSE and NSE on Friday issued an advisory to investors dealing with Online Bond Platform Providers (OBPPs) to explain to them the underlying features of bonds, risks and costs associated with such investments, in order to help them make informed decisions. ADVERTISEMENT In a joint press release issued today, the exchanges said that it is crucial to understand the concepts of the bond markets including the factors affecting the yield of the bonds. The release was issued amid a growing popularity of online bond platforms and easier access to investors to various fixed-income instruments. 1) Yield to Maturity (YTM): One of the most important concepts to understand is the YTM, which represents the total annualized return an investor can expect if the bond is held until its maturity. YTM takes into account the bond's current market price, its periodic coupon payments and the time remaining until maturity. 2) No guaranteed returns: It is important to note that YTM is not a guaranteed return. It can fluctuate based on factors such as changes in market interest rates, liquidity conditions, time to maturity, and the creditworthiness of the issuer.3) If the bond is sold before maturity, the actual return may differ significantly from the indicated YTM. ADVERTISEMENT 4) Generally, when a bond's price is below its face value, its YTM is higher than its coupon rate, and vice versa.5) The coupon rate of a bond refers to the fixed annual interest paid by the issuer, calculated as a percentage of the bond's face value. This provides regular income to investors, usually on a semi-annual or annual basis. ADVERTISEMENT 6) Risks: The payments by issuers are not risk-free. They are dependent on the financial health and credit reliability of the issuer. Any delay or default in payments can adversely affect investor returns. 7) Relationship between bond prices and yields: Bond prices and yields move in opposite directions. When interest rates in the market rise, bond prices fall, leading to higher yields, and when interest rates fall, bond prices increase, lowering the yield. This inverse relationship is fundamental to assessing interest rate risk and understanding potential price movements in the secondary market. ADVERTISEMENT 8) Impact of brokerage: Brokerage reversal or zero brokerage can have a direct impact on the YTM by lowering the overall cost of investment, thereby slightly enhancing the effective return. The final return should always be assessed after considering all associated costs, fees, and applicable taxes.9) Before investing through any online bond platform, investors must take into account several important factors such as checking the bond's credit rating, the issuer's track record in timely repayments, the liquidity of the instrument, settlement timelines, and the tax implications of the investment.10) It is crucial to verify that the platform is a SEBI-registered Online Bond Platform Provider (OBPP). Investors should carefully read platform disclaimers, understand the terms and conditions, and ensure that transactions are carried out through properly regulated and secure systems. ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
10-07-2025
- Business
- Time of India
Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal
India's corporate bond market is set for a major revamp with the launch of Bond Central , a Sebi- and OBPP-backed platform aimed at creating a centralized, transparent database for bond issuances. The initiative is designed to simplify access to pricing, risk metrics, and disclosures for both retail and institutional investors. By reducing information gaps and lowering the minimum investment threshold to Rs 10,000, Bond Central is expected to drive greater retail participation, improve price discovery, and align India's bond infrastructure with global standards such as FINRA TRACE. With the launch of Bond Central, a Sebi-OBPP initiative to aid investors in the fixed-income market, Vineet Agrawal , Co-Founder of Jiraaf, shared his insights with ETMarkets: Bonds Corner Powered By Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal SEBI and OBPP have launched Bond Central, a centralized bond database aimed at boosting transparency and retail participation in India's corporate bond market. The platform offers easy access to pricing, risk metrics, and disclosures, while lowering the minimum investment to Rs 10,000. Experts say it could align India's market infrastructure with global standards and deepen fixed-income penetration. ETMarkets Smart Talk: Fixed income still has a place in FY26 - 15–20% allocation ideal for most, 70% for seniors, says Aamar Deo Singh India's Rs 50 lakh crore bond market grows, but retail investors still sit on the sidelines: Experts Adani Enterprises' Rs 500-crore NCD issue oversubscribed 3x Adani Enterprises' public debt issue oversubscribed on launch day, bankers say Browse all Bonds News with What are the primary objectives behind Sebi's initiative with OBPP to launch Bond Central? How does it benefit the fixed-income market in India? Sebi's stakeholders launched Bond Central to offer a single, centralized database of corporate bond issuances—including listing terms, pricing, risk metrics, and documents—accessible to both retail and institutional investors. By reducing information asymmetry, the initiative aims to foster greater transparency, build market confidence, and drive increased retail participation, which has historically been low. Could you explain how Bond Central will streamline bond market activities and help investors access bonds more efficiently? Bond Central aggregates listings from exchanges and issuers, enabling users to discover, compare, and evaluate bonds in one convenient location. It includes price comparisons with government securities (G-Secs) and fixed-income indices, supported by disclosures and risk insights. This simplifies decision-making and reduces reliance on multiple platforms. Live Events How will this initiative enhance liquidity and transparency in the Indian bond market? By publishing standardized data—including real-time pricing, yield, and credit risk—Bond Central helps reduce opacity in the secondary market. Better visibility supports improved price discovery and attracts more participants, thereby enhancing market liquidity over time. What impact do you foresee this Bond Central initiative having on retail investors and their participation in fixed-income products? Lowering the minimum investment threshold from Rs 1,00,000 to Rs 10,000 via OBPP platforms, combined with access to uniform bond information, democratizes market entry for retail investors. This will likely boost retail volumes, deepen market access, and narrow the participation gap between institutional and individual investors. Can you discuss the potential risks and challenges involved in this initiative and how Sebi and OBPP plan to address them? Key challenges include ensuring data accuracy, timely updates, and investor awareness of bond risk profiles. Sebi and OBPP aim to mitigate these through standardized disclosures, a strong governance framework under a non-profit model, and targeted investor education campaigns via the platform. In what ways can this move contribute to the development of a more vibrant corporate bond market in India? Improved transparency, easier access, and broader investor participation will encourage corporate issuers. As demand from retail investors rises, issuers may increasingly tap into this pool, creating a positive feedback loop. Streamlined issuance and distribution mechanisms will further support market vibrancy. How does this Bond Central initiative compare to similar initiatives in global markets, and what lessons can India learn from them? Bond Central aligns with global systems like the U.S. FINRA TRACE, which consolidates post-trade bond data to promote transparency. India can adopt best practices around real-time trade reporting, regulatory oversight, and compliance standards from such mature platforms. Do you think the introduction of a centralized bond platform will attract more foreign institutional investors (FIIs) to India's bond market? Why or why not? Yes. FIIs value rich, standardized, and reliable data. A centralized platform reduces market opacity and settlement friction, enhancing India's appeal. That said, FIIs will also consider other factors such as currency risk, regulatory clarity, and ease of capital movement. What role do digitalization and technological advancements play in making Bond Central a success, and what kind of infrastructure is required to support it? The success of Bond Central depends on robust digital infrastructure, real-time data feeds from exchanges and depositories, and APIs for seamless OBPP integration. Looking ahead, advanced analytics, AI-driven tools, and investor education features will be key to maximizing its utility. What advice would you give to investors looking to capitalize on this new development in India's bond market, especially in the context of changing interest rates and inflation? Utilize transparency: Compare corporate bonds with G-Secs to assess value and risk. Diversify: Spread investments across issuers and tenors to manage credit and interest rate risks. Stay informed: Monitor repo rate changes (currently 5.5%) and inflation trends. Match duration: Align bond maturity with your investment horizon and liquidity needs. Use tools: Leverage Bond Central's analytics and disclosures for informed decision-making.
Economic Times
10-07-2025
- Business
- Economic Times
Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal
What are the primary objectives behind Sebi's initiative with OBPP to launch Bond Central? How does it benefit the fixed-income market in India? Could you explain how Bond Central will streamline bond market activities and help investors access bonds more efficiently? Live Events How will this initiative enhance liquidity and transparency in the Indian bond market? What impact do you foresee this Bond Central initiative having on retail investors and their participation in fixed-income products? Can you discuss the potential risks and challenges involved in this initiative and how Sebi and OBPP plan to address them? In what ways can this move contribute to the development of a more vibrant corporate bond market in India? How does this Bond Central initiative compare to similar initiatives in global markets, and what lessons can India learn from them? Do you think the introduction of a centralized bond platform will attract more foreign institutional investors (FIIs) to India's bond market? Why or why not? What role do digitalization and technological advancements play in making Bond Central a success, and what kind of infrastructure is required to support it? What advice would you give to investors looking to capitalize on this new development in India's bond market, especially in the context of changing interest rates and inflation? Utilize transparency: Compare corporate bonds with G-Secs to assess value and risk. Compare corporate bonds with G-Secs to assess value and risk. Diversify: Spread investments across issuers and tenors to manage credit and interest rate risks. Spread investments across issuers and tenors to manage credit and interest rate risks. Stay informed: Monitor repo rate changes (currently 5.5%) and inflation trends. Monitor repo rate changes (currently 5.5%) and inflation trends. Match duration: Align bond maturity with your investment horizon and liquidity needs. Align bond maturity with your investment horizon and liquidity needs. Use tools: Leverage Bond Central's analytics and disclosures for informed decision-making. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's corporate bond market is set for a major revamp with the launch of Bond Central , a Sebi- and OBPP-backed platform aimed at creating a centralized, transparent database for bond issuances. The initiative is designed to simplify access to pricing, risk metrics, and disclosures for both retail and institutional reducing information gaps and lowering the minimum investment threshold to Rs 10,000, Bond Central is expected to drive greater retail participation, improve price discovery, and align India's bond infrastructure with global standards such as FINRA the launch of Bond Central, a Sebi-OBPP initiative to aid investors in the fixed-income market, Vineet Agrawal , Co-Founder of Jiraaf, shared his insights with ETMarkets:Sebi's stakeholders launched Bond Central to offer a single, centralized database of corporate bond issuances—including listing terms, pricing, risk metrics, and documents—accessible to both retail and institutional investors. By reducing information asymmetry, the initiative aims to foster greater transparency, build market confidence, and drive increased retail participation, which has historically been Central aggregates listings from exchanges and issuers, enabling users to discover, compare, and evaluate bonds in one convenient location. It includes price comparisons with government securities (G-Secs) and fixed-income indices, supported by disclosures and risk insights. This simplifies decision-making and reduces reliance on multiple publishing standardized data—including real-time pricing, yield, and credit risk—Bond Central helps reduce opacity in the secondary market. Better visibility supports improved price discovery and attracts more participants, thereby enhancing market liquidity over the minimum investment threshold from Rs 1,00,000 to Rs 10,000 via OBPP platforms, combined with access to uniform bond information, democratizes market entry for retail investors. This will likely boost retail volumes, deepen market access, and narrow the participation gap between institutional and individual challenges include ensuring data accuracy, timely updates, and investor awareness of bond risk profiles. Sebi and OBPP aim to mitigate these through standardized disclosures, a strong governance framework under a non-profit model, and targeted investor education campaigns via the transparency, easier access, and broader investor participation will encourage corporate issuers. As demand from retail investors rises, issuers may increasingly tap into this pool, creating a positive feedback loop. Streamlined issuance and distribution mechanisms will further support market Central aligns with global systems like the U.S. FINRA TRACE, which consolidates post-trade bond data to promote transparency. India can adopt best practices around real-time trade reporting, regulatory oversight, and compliance standards from such mature FIIs value rich, standardized, and reliable data. A centralized platform reduces market opacity and settlement friction, enhancing India's appeal. That said, FIIs will also consider other factors such as currency risk, regulatory clarity, and ease of capital success of Bond Central depends on robust digital infrastructure, real-time data feeds from exchanges and depositories, and APIs for seamless OBPP integration. Looking ahead, advanced analytics, AI-driven tools, and investor education features will be key to maximizing its utility.
Economic Times
01-07-2025
- Business
- Economic Times
Singapore's GIC gets CCI approval to buy stake in IPO-bound Groww
Viggo Investment, a subsidiary of Singapore's sovereign fund GIC, has received approval of Competition Commission of India (CCI) to acquire stake in the Billionbrains Garage Ventures, the IPO-bound owner of stockbroker Groww. GIC had approached the competition regulator in May, seeking approval for acquiring a 2.14% stake in the Bengaluru-based fintech startup. The investment is part of a larger funding round estimated at $250-300 million. GIC is expected to lead the round with an infusion of around $150 million, while Groww has also engaged with existing investor Tiger Global to participate. ET had first reported on the financing on March Investment is a special purpose vehicle wholly owned by Enterprise Holdings, which in turn is held by GIC Ventures. Groww recently closed a $250 million funding round led by GIC at a valuation of around $6.5 billion. On May 26, the company filed its draft red herring prospectus (DRHP) for a public listing with the markets regulator Securities and Exchange Board of India (Sebi). The IPO size is estimated to be in the range of $700 million to $1 billion, people in the know told ET. Diversification push In the run-up to its IPO, Groww is planning to apply for an Online Bond Platform Provider (OBPP) licence and expand into offering corporate bond transactions through its mobile app, according to people in the know. Groww, a Sebi-regulated stockbroker, already offers primary sale of freshly listed corporate bonds and will expand into offering trades in corporate bonds once it secures an OBPP licence, the people is part of the company's broader strategy to go beyond core stockbroking services and become a full-stack financial services platform. From credit to wealth management and now bond distribution, Groww is slowly expanding its product suite as it prepares for a public listing. This move will enable Groww to compete with other OBPPs, including Wint Wealth and Grip Invest. These platforms offer listed bonds through their mobile applications. These instruments are a more secured asset class than equity investments and typically offer higher rates of interest than banks' fixed deposits.
