Opening this thread to gauge whether the ValuePickr community sees corporate bonds as worth a serious, sustained discussion the way equities have been here for years.
Three things have shifted recently that make me think the conversation is overdue:
1. The infrastructure is in place. SEBI-registered OBPPs (Online Bond Platform Providers) now allow retail investors to buy listed corporate bonds in small ticket sizes (face value reduced to Rs 10,000 in some cases), with NSE/BSE-enabled settlement, KYC, and demat delivery. The friction that kept corporate bonds an HNI/institutional product for two decades is largely gone.
2. The regulator is openly pushing this now. SEBI held its inaugural Pan-India Outreach Program for Corporate Bonds on Feb 4, 2026, with NSE and BSE. The Chairman, Tuhin Kanta Pandey, was direct about the gap:
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Only 10% of investors are aware of corporate bonds as an investment product, lower than deposits, insurance, small savings, and even cryptocurrency at 15% (per SEBI’s own investor survey). ANI News
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The corporate bond market has grown from Rs 17.5 trillion in FY15 to Rs 53.6 trillion in FY25, and could exceed Rs 100-120 trillion by 2030. MarketScreener
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“Capital markets must lead this growth, as bank credit alone is insufficient” to fund infrastructure, green transition, manufacturing, and services. ANI News
Speech link: https://www.sebi.gov.in/media-and-notifications/speeches/feb-2026/address-by-chairman-at-the-inaugural-outreach-program-on-corporate-bonds_99492.html
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A good thread to start.
Bonds are a great diversification avenue, and the market has now picked up pace over the past 3-4 years. When equity markets were overvalued, medium term bonds of decent corporates have provided 8-10% return. Definitely a worthwhile instrument to park your funds when equities are in a bubble.
However, still a long way to go for the market to develop fully. a) It’s still dominated by NBFCs/financial issuances, b) the market is very illiquid - the OBPPs jump at the opportunity to sell you bonds, but are not as eager to buy them back and c) the depth of due dilligence required on individual corporates along with a multitude of instruments issued by a single borrower might not make them suitable for retail investors with no prior background.
I guess Debt MFs are still a great bet for those investors with no prior experience and/or with paucity of time to do their own research.
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True but while I last reviewd the Debt MF portfolios - couldn’t see anything below a AA rated bonds and imo Debt MFs and FDs sit very close in my head (I maybe wrong).
Having said that I find it very difficult to gather the strength to invest serious money in A/BBB rated companies - feels like anything can go wrong.
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Just a few days ago, I was discussing with my friend how immature Indian bond market is compared to the US. For example, it’s customary for Americans to receive and gift bonds as gifts. It’s rarest of rare in India.
As you mentioned, the friction came from regulations as well as accessibility to the instruments.
Additionally, along with corporate bonds, even municipalities are now going the bond route for raising money for various developmental projects but see thin participation, not even from the local citizens.
If researched and timed well, one can easily yield 8%-9% in secured bond instruments. I believe and hope that awareness and knowledge should build a strong retail bond market in India.
P.S. The OBPP poster boy, GoldenPi, is being acquired by Oxyzo. (Oxyzo To Buy Debt Investment Platform GoldenPi For â‚ą42 Cr)
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I don’t think there is a better platform than this where it all starts.
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