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Economic Times
08-08-2025
- Business
- Economic Times
Click-to-Invest: How technology is making bonds as simple as buying stocks
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. Tired of too many ads? Remove Ads Then vs now: A quiet revolution Tired of too many ads? Remove Ads 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 Tired of too many ads? Remove Ads 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 .) '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 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 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 any student of economics will attest, structural change is often the result of supply-demand 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 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 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% 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 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)
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.
Time of India
19-06-2025
- Business
- Time of India
Groww gets into corporate bond distribution, set to apply for Sebi licence
Bengaluru-based stockbroker Groww is looking to apply for an Online Bond Platform Provider (OBPP) licence and expand into offering corporate bond transactions through its mobile app, according to two 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 said. This 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 . by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's The Average Price of a 6-Hour Gutter Upgrade in Roseville Read More Undo 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. 'The company has just started rolling out this product for its customers. More features will be rolled out eventually, this is part of Groww's larger strategy of expanding into deeper financial services products,' said a person in the know. Live Events The company did not comment. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Groww's bid to diversify its business comes at a time when the Peak XV Partners-backed startup is waiting for a Sebi nod to list on the exchanges. In May, Groww filed its draft red herring prospectus with Sebi through the confidential route, seeking to raise between $700 million to a billion dollars in fresh capital. The company recently closed a $250 million funding round led by GIC at a valuation of around $6.5 billion. It closed FY25 with total revenue of Rs 4,056 crore and a net profit of Rs 1,819 crore. Groww, which started as a direct mutual fund platform, has been offering stockbroking and credit services in recent years. The fintech startup secured a non-banking finance company (NBFC) licence from the Reserve Bank of India to launch products such as consumer loans, personal loans and others. Recently, Groww closed the acquisition of Fisdom , which enables it to get into the lucrative wealth management space and compete with the likes of Dezerv and Ionic Capital. Last year, Groww also opened margin trade funding for its investors. With an OBPP licence, Groww will also get into bond distribution, a market that has been seeing a major increase in retail participation in recent times. However, the recent defaults by BluSmart and other prominent startups has dampened some of the enthusiasm in the corporate bond market, with investors becoming wary of taking risky bets. Still, a large chunk of consumers is looking for more avenues to diversify their investments, and corporate bonds represent a major opportunity for them. The sector has also seen major interest from venture capital funds. Wint Wealth secured funding from Zerodha's Rainmatter, Eight Road Ventures, 3One4 Capital and others. Grip Invest is backed by Venture Highway and others.
