BondX is a first-of-its-kind alternative investment product that pools together receivables from investment-grade rated bonds (“Bonds”) issued by curated issuers and offers users fixed periodic returns via a rated, listed, compliant and demat-held instrument at a fractionalized investment amount
80% of Bonds in India are available at a minimum investment amount of INR 10 lakhs and above. BondX makes it possible for investors to access receivables of these same Bonds in multiples of just ~INR 1 lakh while also providing benefits of greater diversification (at lower ticket sizes), credit rating, and regulatory compliance
BondX by Grip does so by allowing you to invest in a curated pool of Bonds; here is an example: Imagine five unique Bonds. Three come with a hefty INR 10 lakh ticket size, while the other two have a more accessible INR 1 lakh ticket size. Buying even one unit each of these Bonds individually would require an investment of INR 32 lakhs. With BondX, you can gain exposure to this curated portfolio of 5 Bonds and achieve the same diversification levels at ticket sizes just ~INR 2-3 lakhs!
BondX retains all the existing features of Bonds such as non-market linked fixed returns, attractive risk-reward proposition, rated by tier 1 credit rating agency, listed on NSE or BSE and held in investor’s Demat accounts; with an X factor of securitization:
- Diversification across a pool of Bonds and multiple issuers through a single instrument.
- Access to Bonds at low ticket sizes, usually not available for retail investors due to high face value
Grip's vision is to ensure that individual investors can access the same investment opportunities as these large investors and build healthy, diversified portfolios. In line with this vision, we launched BondX.
Partner Curation and Due Diligence
Qualitative Evaluation of the Issuer
For each Bond, key evaluation criteria include: Assessment of the issuer’s track record, founders/promoters background, experience of the management team (CXOs), any prior or ongoing litigation, other filtering criteria include that the issuer should be i
Quantitative Evaluation of the Issuer
For each Bond, key filtering criteria include: Capital adequacy ratio > 25% (10% higher than the regulatory requirement of 15%), Net non-performing assets (NNPA) < 3%, Other factors include evaluation of asset-liability mismatch, concentration of loan boo
Quality of the Underlying Security
For each Bond, key factors include: Security cover of minimum 1.0x of the principal outstanding, Nature of covenants and any embedded options, Last rating time-lag and probability of downgrade/upgrade, etc.
How to Invest?
- Provides access at lower ticket sizes (of INR 2-3 lakhs) to Bond receivables that are usually inaccessible on account of high face values (INR 10 lakhs and above) of the individual bonds
- Listed on BSE or NSE and issued under the SEBI’s SDI regulations
- Held in investors’ demat accounts, the fixed monthly/quarterly returns will be paid out from a SEBI-registered trust
- Unlike debt mutual funds, there is no annual management fees or expense ratio charged on BondX
- Investment-grade rated instrument providing increased transparency and an easier understanding of risk
For your knowledge
To help you
Frequently Asked Questions
Is BondX tradable?
How is BondX secured?
What is the tax applicable on my return?
Is it compulsory to do KYC for BondX investment?
Yes, RBI and SEBI have mandated KYC requirements for the purchase of the PTCs to prevent money laundering activities
Is it okay if I transfer the funds from someone else’s account?
No. It is mandated that the funds must be transferred from the bank account held in the name of the investor
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