Check issuer's finances, debt repayment record before investing in bonds

Diversify across bonds with different credit ratings and hold them till maturity

The Securities and Exchange Board of India (Sebi) has decided to reduce the minimum face value of privately placed non-convertible debentures (NCDs) from ~1 lakh to ~10,000. The face value had earlier been lowered from ~10 lakh to ~1 lakh in October 2022. The bulk of all NCD offers take place through the private placement route. This is a landmark step that is expected to boost retail participation in the bond market.

With this measure, the regulator has lowered the entry barrier into the bond market. “Youngsters and those with lower amounts to invest will also be able to participate in