Click-to-Invest: How technology is making bonds as simple as buying stocks

Economic Times

08-08-2025

India's bond market is undergoing a significant transformation, becoming more accessible to retail investors. SEBI's reforms, including reduced minimum investments and the introduction of Online Bond Platform Providers, have democratized bond investing. Retail investors are now allocating over $3 billion annually to listed bonds, with innovations like bond baskets and auto-reinvestment features enhancing the user experience.
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Then vs now: A quiet revolution
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The forces behind the transformation
SEBI's game-changing reforms
Minimum investment reduced: A 99% drop in the entry barrier—from Rs 10 lakh to Rs 10,000 for privately placed bonds.
A 99% drop in the entry barrier—from Rs 10 lakh to Rs 10,000 for privately placed bonds. Creation of OBPP licenses: The launch of the Online Bond Platform Provider (OBPP) framework empowered fintech platforms to legally distribute bonds online to retail investors.
The launch of the Online Bond Platform Provider (OBPP) framework empowered fintech platforms to legally distribute bonds online to retail investors. Exchange-based execution: All orders must now be placed and settled via recognized stock exchanges—bringing transparency, standardization, and investor protection.
Not just simpler—also safer
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Key protections include:
Counterparty risk mitigation: All trades settle via stock exchanges on a T+1 basis, eliminating bilateral risks.
Product quality controls: Only bonds meeting enhanced disclosure and governance standards can be offered in smaller ticket sizes.
Mandatory ratings: Credit ratings are compulsory for retail bond offerings, improving transparency.
Platform accountability: OBPP platforms are subject to SEBI and exchange audits, strict advertisement codes, and ongoing compliance checks.
A new era of innovation
Bond baskets: Several platforms now offer pre-curated bond portfolios, allowing users to diversify risk easily.
Several platforms now offer pre-curated bond portfolios, allowing users to diversify risk easily. Auto-reinvestment features: Infinite is a pioneering product that enables interest earned on bonds to be automatically reinvested into mutual funds—enhancing compounding potential.
Conclusion
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com .)
'How can I invest in a bond?'Until recently, this wasn't a common question among Indian retail investors . The reason was simple: the process was so complex and inconvenient that most investors excluded bonds from their portfolios altogether.While few of us were old enough to witness India's stock market go digital in the early 2000s, we now have a front-row seat to a similar transformation unfolding in the bond market . A once-clunky process is being reimagined for the digital age.The result? Investing in bonds now mirrors the experience of buying stocks. And this is just the beginning. In the coming months, investors can expect SIPs for bonds, loan facilities against bond holdings, and even active trading as investor sophistication grows.As any student of economics will attest, structural change is often the result of supply-demand dynamics.For decades, Indian households trusted fixed deposits (FDs) as their primary vehicle for fixed returns. But as India's macroeconomic fundamentals improved, interest rates declined steadily. The post-COVID rate cuts by the RBI—dropping policy rates to record lows—pushed investors to look elsewhere for yield. This led to a surge of interest in higher-return instruments like invoice discounting, peer-to-peer lending, and asset-backed financing.By 2022, it became clear that regulators needed to step in—not only to meet this growing demand, but to channel it into safer, more transparent products. SEBI responded decisively.Between 2022 and 2024, SEBI rolled out a series of landmark regulations that have made India's bond markets among the most retail-friendly in the world:These three pillars—access, digital reach, and regulatory oversight—have democratized bond investing in India. And the results speak for themselves: retail investors are now allocating over $3 billion annually to listed bonds, growing at 300% year-on-year.India's regulatory approach has been lauded for its pragmatism and foresight, balancing innovation with investor protection. The shift to simplicity has not come at the cost of security.Today, over 30 SEBI-licensed OBPPs are not just making bonds accessible—they are elevating the user experience through smart innovation:India's bond market is undergoing a quiet revolution. What was once an exclusive, offline, and illiquid asset class is rapidly becoming as seamless and retail-friendly as equities. Enabled by regulatory foresight and accelerated by technology, bonds are no longer the neglected cousin in a portfolio—they are fast becoming the digital-age investor's trusted companion.(The author of the article is Nikhil Aggarwal, Founder & Group CEO, Grip Invest): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)