How to invest or trade in NCD listed at BSE and NSE in the Indian markets?

1

I found out there is no direct way to invest in the NCD’s through traditional stock brokers like Groww, Zerodha, HDFC Sky, Upstox, etc. Some of the NCD’s can be purchased using GoldenPi platform but they don’t list all the NCD which are available for trading and they list only a selective few.

I went to the BSE official website and found out all NCD IPO can be found at:

I did not find any direct way of investing using above official website of BSE. Additionally, not all NCD IPO which are listed at BSE/NSE are made available at GoldenPI. So how do we invest in any NCD of our choice? Is there any way do this?

Also, I heard that listed NCD can be sold back into the markets. How do we do that because traditional stock brokers don’t offer the facility of buying/selling (trading) of NCD’s.

Some of the upcoming NCD IPO can be found at:

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2

In zerodha u can type stock name for example credit acess then they will show ncd series wise.

3

There are also two platforms gripinvest and wint which occassionaly lists listed ncd.

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Hi @Anubhav_Singh,
I would like to add my two cent here. basically below 2 way can help

  1. Type your company name and then ncd and open NSE link you will see all bonds of that company
    like edelweiss ncd nse and click on first link
  2. In any brokers app type interested rate than some options will apear like try 10.25 , 10.50, 9.5 and like other rates

I hope that will help

5

To the best of my knowledge, the regular brokerages do not deal much into NCDs/Bonds because they are not lucrative to them. NCDs/Bonds are very thinly traded instruments.

However, they are available for purchase/sell through SEBI registered bond houses. One can very well register in their investment platform and buy or sell the NCDs/Bonds. Not all bond houses would have the stocks of all listed NCDs/Bonds. They are available for purchase only when someone is ready to sell. Usually good NCDs/Bonds (although listed in BSE/NSE) are held privately by the long term investors so they are not easily available for trade.

Another point to note is, bond houses hesitate to deal in low credit rated NCDs/Bonds because they are too risky and may default.

While there are many NCD/Bond dealers, personally I have used reputed platforms such as https://www.thefixedincome.com/
https://www.indiabonds.com/
https://www.bondsindia.com/

They are good, safe, transparent with great customer service.

Tip: Do not forget to negotiate on the yields.

I hope this helps.

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You can buy ncds and bonds on icicidirect and paytm money platform. I have given few snapshots here My portfolio updates and investment journey - #39 by joinjp2003

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7

you can invest in NCDs - both primary and secondary - via indiabonds.com The NCDs and bonds will be credited to your demat account. I have purchased NCDs in the past via indiabonds which have been credited to my HDFC demat account.

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I would like to thank everyone for your very helpful responses.

As someone new to investing in the bonds, are we really allowed to negotiate the bond YTM or bond yields with the bond issuer?

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I purchased a NCD lot in the recently held NCD IPO using GoldenPi. The purchased NCD were allocated to me and transferred to my Groww demat account. However, Groww does not list or allow trading of any NCD’s on its platform. How in the future can I trade these listed NCD’s in the secondary market which are stored in a demat account of a platform (Groww) which does not allow NCD trading?

10

Yes. You can negotiate the listed bonds YTM with the issuer saying you are being offered a better YTM with other issuers. I did many times and got a better YTM.
Even a 0.01% increase in YTM is a gain, so why to give up.

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11

India bonds allows for this. I managed to get Piramal 6.75 per cent bonds at slightly below 11 per cent yields recently from india bonds.

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12

Usually bond investments are done with an intent to earn a fixed interest income by holding them until maturity. Of course one can always sell them if you are sitting on a decent appreciation or in need of funds. You should be able to sell them through Goldenpi. Below are the steps to sell. Demat broker is Groww in this case.

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13

Pardon the naive question, doesn’t ICICI direct and other similar brokerages offer bonds? Trying to understand the need for sites like IndiaBonds

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14

To summarize, the following can be used to trade bonds:

  1. PayTM Money
  2. India Bonds
  3. Bonds India
  4. The Fixed Income
  5. Grip Invest
  6. Wint
  7. Incred Money
  8. GoldenPi

The list is not exhaustive and I am not sure about Zerodha.