When I consider fixed-income ideas for my portfolio, corp bonds give me control over issuer, maturity, and cash-flow style. The Indian market now offers multiple, well-regulated routes to access them, but the variety can feel confusing at first. Here’s a concise walkthrough of how to buy corporate bonds in India while staying practical and compliant.
First, I make sure the basics are in place: a PAN-linked Demat account and updated KYC. Without Demat, settlement gets messy and secondary trades aren’t possible. I also decide my objective—steady coupons, potential capital appreciation, or laddering for future cash needs. That clarity helps me choose between AAA public sector names and higher-yield private issuers, and it keeps me disciplined when I compare options for corp bonds.
There are three broad avenues I use:
1) Public issues (NCD “IPOs”).
Companies periodically raise money through public non-convertible debenture issues. I can apply via my broker or bank using ASBA/UPI, choose a series (monthly, quarterly, or annual payout; secured or unsecured), and allotment arrives directly in my Demat account. This route suits investors who prefer fresh issuance, transparent offer documents, and standardized terms. It’s also an easy entry point for how to buy corporate bonds in india if someone is starting out.
2) Online Bond Platform Providers (OBPPs).
SEBI-registered platforms aggregate listed bonds across issuers and maturities with clear risk disclosures, live quotes, and standardized documentation. I find this path helpful when I want better discovery, filters (credit rating, yield to maturity, payout frequency), and a guided checkout flow. OBPPs don’t “guarantee” returns; instead, they simplify market access and show me the total consideration—including accrued interest—before I place an order. For many investors, this is the most intuitive answer to how to buy corporate bonds in india.
3) Brokers on the exchange debt segment / RFQ.
Through my trading account, I can place orders in the debt segment or request quotes (RFQ) from market participants. This is useful for experienced investors who want specific lines or larger sizes. I always confirm settlement date, clean price vs. dirty price, and the exact lot size before I hit “buy,” especially for thinly traded corp bonds.
Regardless of the route, my due-diligence checklist never changes:
- Issuer quality: I read the rating rationale and monitor recent financials and news.
- Structure: Secured vs. unsecured, embedded calls/puts, and any subordination that could affect recovery.
- Liquidity: I check recent traded volumes and the likely bid-ask spread; better liquidity reduces exit friction.
- Cash flows: Coupon rate, payout frequency, day-count convention, and YTM versus my tax bracket and horizon.
- Costs & taxes: I account for brokerage, platform fees, and accrued interest. Interest is taxable; indexation and holding period rules apply to capital gains.
If someone asks me how to buy corporate bonds in india efficiently, I suggest starting with a clear goal, using an OBPP for discovery and transparent execution, and then graduating to primary issues or RFQ once they’re comfortable reading term sheets. Diversifying across issuers and maturities—rather than chasing the highest coupon—keeps the risk balanced. With a patient approach, documented processes, and the right platform, building a thoughtful bond sleeve becomes straightforward and repeatable.
