Corporate bonds are debt securities issued by companies, NBFCs, or corporations referred as issuers.Corporate bonds offer fixed returns within a fixed tenure called yield to maturity (YTM).
Investors provide funds to the issuer, who offers fixed returns through periodic interest and principal payments, made monthly, quarterly, or semi-annually.
Independent agencies like CRISIL, ICRA, and CARE assess the issuer's financial health and assign credit ratings between AAA (highest) to D (lowest). A higher rating indicates a lower risk.
Corporate bonds offer liquidity through the secondary market, allowing investors to sell bonds before maturity.
REASON AND BENEFITS
Consistent Income
Bonds in India provide steady and fixed returns through fixed interest payments, making them a favourable choice for investors looking for a predictable income stream.
Accessible Investment
You can begin investing in corporate bonds with a minimum of just 1,000, offering a range of options to align with your financial goals and preferences.
Portfolio Diversification
Invest in bonds that are backed by credit ratings,offering a safer investment option that remains insulated from stock market volatility.
Liquidity & Flexibility
Investors can sell their bonds on Grip anytime, leveraging the liquidity of the secondary corporate bond market to exit investments early with ease.
To help you
Frequently Asked Questions
When can I place a sell order for my bonds with my broker?
Sell orders for bonds can be placed only on exchange working days—Monday to Friday—excluding market holidays. The trading window is open from 9:15 AM to 2 PM.
Which Bonds are eligible for ‘Sell Bonds Anytime’?
You can sell any bond purchased through Grip using the ‘Sell Bonds Anytime’ feature.
What instruments are applicable for liquidity?
Currently, only bonds purchased via Grip Invest can be sold. Grip will extend liquidity support to SDIs (Structured Debt Instruments) soon.
Are there any charges for selling the Bonds?
Yes, there is a charge of 0.25% which is adjusted in the price of the bond offered by the buyer.
Please note that your demat broker may additionally charge transaction fees.
When will I receive my money?
Once your bond sell order is executed on the exchange and the order is settled, the funds will be credited to your demat-linked bank account or demat broker wallet by end of the day.
