Bond questions, answered
The 44 questions retail investors ask most about buying bonds in India, ranked from TradingQnA view counts, Reddit threads and search suggestions. Each answer starts with the short version.
Buying bonds
How do I buy bonds in India?
Retail investors in India buy bonds through 3 routes: a SEBI registered online bond platform (OBPP) or broker app that settles corporate bonds on the exchange RFQ platform, the NSE or BSE order book through any broker, and RBI Retail Direct or a broker's non-competitive bid for G-secs, T-bills and SDLs. Government bids start at ₹10,000 and are free on RBI Retail Direct, Zerodha and Fyers, while Upstox and HDFC Securities charge 0.06% plus GST.
Can I sell a bond before maturity?
Yes, a listed bond can be sold before maturity, but a buyer is never guaranteed and the route depends on where you hold it. You can sell on the NSE or BSE order book through any broker, or use a platform's own sell feature: Grip charges 0.25% after about 2 months, InCred Money charges 2% of the latest market price after 21 days, Wint buys back at its discretion, and Jiraaf offers no resale facility.
Can NRIs buy bonds in India?
Yes, through some channels: RBI Retail Direct accepts non-residents who are eligible under FEMA 1999 for G-secs, T-bills, SDLs and SGBs, and IndiaBonds advertises NRI access, while Grip Invest and Jiraaf do not accept NRIs. Rules differ by platform, product and account type (NRO, NRE, PIS or non-PIS), and this site has not verified each platform's NRI terms, so confirm with the platform before you open an account.
What is the minimum investment? Can I start with ₹1,000?
Sometimes: Bondbazaar and IndiaBonds state a ₹1,000 minimum for corporate bonds and Bondbazaar quotes ₹100 for G-secs, but most corporate bonds on bond apps cost about ₹10,000 or about ₹1 lakh per unit. SEBI only allowed ₹10,000 face value for privately placed bonds from 3rd Jul 2024, and "start with ₹100" adverts often meet live listings near ₹10,000.
Tax-free bonds in India: are they still available, and how are they taxed?
Tax-free bonds are bonds issued by public sector bodies whose interest is exempt from income tax (section 10(15) of the old Income-tax Act); no new issue has come since 2016, so you can only buy existing ones on the NSE or BSE order book through a broker or from platforms such as GoldenPi, IndiaBonds and Aspero. Only the interest is exempt, a gain on sale is taxable, and at the 30% slab a 5% tax-free yield equals about 7.14% on a taxable bond, before surcharge and cess.
Choosing a platform
Which is the best and safest bond platform?
No single bond platform is best or safest for everyone, and SEBI registration covers the platform, not the bonds it sells. Compare 6 checkable facts: exchange registry status, where your bonds are held, disclosed costs, exit terms, the credit quality on the shelf and the regulatory record; SEBI fined 4 bond platforms between Apr 2025 and Oct 2026, all for settling trades off the exchange RFQ platform.
Are Wint Wealth, Grip, Stable, Aspero and other bond apps safe or legit?
Wint Wealth, Grip Invest, Stable Bonds and Aspero are SEBI registered stock brokers enabled as online bond platforms on NSE (Wint since 16th Aug 2023, Grip since 29th Aug 2023, Stable since 20th Mar 2024, Aspero since 8th Oct 2024), so they are legitimate intermediaries. Registration does not protect you if the company whose bond you buy fails to pay, so each bond's issuer, lowest rating and seniority still decide how safe your money is.
GoldenPi vs IndiaBonds vs Wint vs Stable vs Grip: which is better?
None of GoldenPi, Grip Invest, IndiaBonds, Stable Bonds and Wint Wealth wins on every count; they differ on custody, exit terms, products and regulatory record. GoldenPi credits bonds to your existing demat while Grip, IndiaBonds, Stable and Wint run their own depository participants; Grip charges 0.25% on its sell feature after about 2 months, Wint's sell-back is at its discretion, and SEBI fined GoldenPi ₹4.5 lakh and Wint ₹1 lakh for settling trades off the RFQ platform.
Is this bond platform SEBI registered? How do I check?
SEBI keeps no bond platform list of its own; its OBPP page links to NSE's list (43 entities as on 14th Oct 2026, 39 enabled) and BSE's list (38 rows, 35 active). Find the app's legal entity and SEBI number (INZ followed by 9 digits) in its footer, match both to a row, and check that NSE does not show Not enabled and BSE does not show Inactive.
Are the bonds I buy on a platform held in my own demat?
Yes, bonds bought on a registered platform settle through the exchange clearing corporation into a demat account in your name, but it is not always the demat you already have. GoldenPi, Jiraaf, Altifi and BondScanner credit your existing demat, while Wint Wealth, Stable Bonds and Bondbazaar open a demat with their own depository participant (Wint's is NSDL DP IN304633), and users report that a second demat can end BSDA status.
Why does the same bond show a different yield on two apps?
Many bond apps sell from their own inventory and build their margin into the price, and SEBI's list of what a platform must show for each bond includes clean price, dirty price and YTM but no line for the platform's own spread, so the same ISIN can show different yields on 2 apps on the same day. Gaps also come from comparing a clean price with a dirty one, or quotes taken at different times.
How do I buy corporate bonds on Zerodha?
As of 17th Oct 2026 Zerodha has no online bond platform for corporate bonds: NSE's OBPP list, updated 14th Oct 2026, shows Zerodha Broking as "Not enabled". You can still buy listed NCDs and bonds on the Kite exchange order book like a share, and bid for G-secs, T-bills and SDLs with no Zerodha fee since 1st Mar 2024; bond IPOs must be applied for through net banking ASBA.
Is GoldenPi or Wint Wealth part of Zerodha?
No. GoldenPi and Wint Wealth are separate companies with their own SEBI registrations; Zerodha's investment arm Rainmatter has invested in both, and GoldenPi describes Zerodha as a strategic business partner. GoldenPi also agreed in May 2026 to be acquired by Oxyzo Financial Services in a reported ₹42.4 crore share swap, which had not been confirmed as closed by 17th Oct 2026.
Do I need a new demat for every bond platform, and will it break BSDA?
Not always: Wint Wealth, Stable Bonds and Bondbazaar have you hold bonds in a demat they open, Grip and IndiaBonds run their own depository participant, while GoldenPi, Jiraaf, Altifi and BondScanner deliver to the demat you already have. Forum users report that a second demat can cost you Basic Services Demat Account (BSDA) status, which at Zerodha means ₹300 a year plus GST in AMC instead of ₹0 on holdings up to ₹4 lakh.
Are referral bonuses and "extra yield" offers on bond apps allowed?
SEBI's rules notified on 29th Aug 2024 bar every registered bond platform, each of which is a SEBI stock broker, from any association, including money, client referrals or tech integration, with unregistered people who give investment advice or make return claims, so a referral link attached to a return promise puts the platform at risk. "Extra yield" bonuses are prices a platform sets on its own inventory, and SEBI's Aug 2026 ad code proposal targets the urgency messaging that often comes with them. This site takes no referral or affiliate money from any platform.
What is an online bond platform provider (OBPP), and which ones are SEBI registered?
OBPP stands for Online Bond Platform Provider: a company registered with SEBI as a stock broker in the debt segment and enabled by NSE or BSE to sell listed bonds online, with every listed bond order routed through the exchange RFQ platform and settled by the clearing corporation into your demat. NSE's list as on 14th Oct 2026 had 43 entities (39 enabled) and BSE's 38 (35 active).
Safety and risk
Are corporate bonds safe in India?
Corporate bonds in India are as safe as the company that issued them, the security behind them and where they rank for repayment; there is no deposit insurance and the selling platform is not liable. Defaults do reach retail investors: TruCap Finance NCDs sold through bond platforms went to CARE D on 18th Jul 2025, and from about 21st Nov 2026 every bond platform must show a Credit Risk-o-Meter based on the lowest available rating.
Is a 12% to 15% bond too good to be true?
A 12% to 15% bond is not a scam by default, but the extra yield is payment for risk: a weaker issuer, unsecured or subordinated ranking, a securitised structure, a high yield on a bond that repays principal early, or a bond that is hard to sell. With RBI Floating Rate Savings Bonds paying 8.05% for Jul to Dec 2026, a 14% bond pays about 6 points more, and that gap is the market's price for the chance of late or partial repayment.
What happens if the bond issuer defaults?
If an issuer misses a payment, the debenture trustee acts for all bondholders and can enforce any security or go to the insolvency courts, while the platform that sold you the bond is not liable to repay you. How much you get back, and when, depends on the security and seniority: TruCap Finance missed a ₹72.28 crore payment on 16th Jul 2025, and its trustee confirmed 6 ISINs fully repaid with penal interest by 23rd Oct 2025 while 1 ISIN stayed in default.
What happens to my bonds if the platform shuts down?
Bonds bought through a SEBI registered platform settle through the exchange clearing corporation into a demat account in your name, so they remain yours and the issuer still owes you interest and principal if the platform closes. What you can lose is anything only the platform provides, such as Wint Wealth's sell-back or Grip's Sell Bonds Anytime, and if the platform also ran your demat you may have to move it.
What do AAA, AA, A and BBB mean, and what is the Credit Risk-o-Meter?
AAA, AA, A and BBB are the investment grade rating bands used by Indian agencies such as CRISIL, ICRA, CARE, India Ratings and Acuité, with AAA the strongest; BB and below is sub-investment grade and D means default. From about 21st Nov 2026 every SEBI registered bond platform must show a Credit Risk-o-Meter with 6 levels, from Lowest for AAA to High to very high risk of default for B, C and D, based on the lowest rating the bond holds.
Secured vs unsecured vs subordinated: which is safer?
Seniority only sets the order in which bondholders are repaid if the issuer fails: secured holders recover first from the assets charged to them, then senior unsecured holders, then subordinated holders, with perpetual and AT1 bonds last. "Senior secured" describes that ranking, not a guarantee, because what you recover still depends on what the assets fetch and how fast the debenture trustee can enforce.
Tax
How is bond interest taxed?
Bond interest is added to your income and taxed at your slab rate, whether it comes from a corporate NCD, a G-sec or an SDL. If you sell a listed bond after holding it more than 12 months the gain is taxed at 12.5% without indexation; if you hold it 12 months or less, or the bond is unlisted or a market-linked debenture, the gain is taxed at slab (rules in force since 23rd Jul 2024).
Is TDS deducted on bond and NCD interest?
Yes. Since 1st Apr 2023 issuers deduct 10% TDS from interest on listed debentures and NCDs (20% if your PAN is not on record), including bonds issued before that date. From 1st Apr 2026 the rule sits in section 393(1) of the Income-tax Act 2025 at the same rate, and 54EC capital gain bond interest is paid without TDS.
Is an SGB bought on the exchange still tax-free at maturity?
As reported after Budget 2026, no: from 1st Apr 2026 the capital gains exemption on SGB redemption applies only to original subscribers who hold to maturity, so an SGB bought on the exchange and redeemed with RBI would be taxed as a long-term gain at 12.5% if held more than 12 months. This rests on a Quicko reply and forum threads, not on the enacted Finance Act text, so confirm it before relying on it.
I'm in the 30% slab: are 10% to 12% bonds worth it?
Bond interest is taxed at your slab, so in the 30% slab a 10% bond yields about 7% after tax and a 12% bond about 8.4%, before cess and surcharge. Tax shrinks the extra reward over safer options by the same 30%, but it does nothing to the credit risk, so the useful comparison is post-tax yield against an alternative with the same credit quality.
How do I report accrued interest paid at purchase in my ITR?
The reported practice is to claim the accrued interest you paid the seller as a deduction under section 57 against the interest income from that same bond, so you are taxed only on the interest earned while you held it; a tax filing service gave this answer on TradingQnA in Jul 2026. Treat it as reported practice rather than settled law, and confirm the treatment, and the matching section of the Income-tax Act 2025, with a CA.
Bond basics
Bonds vs FD: which is better?
Neither is better in general: interest on both bonds and FDs is taxed at your slab rate, so a 10% bond and a 7.5% FD keep a 2.5 point gap before tax and a 1.75 point gap at the 30% slab. That extra yield pays you for taking one company's credit risk and a harder exit, while a bank FD is a deposit covered by DICGC insurance up to its limit.
When is interest paid, and do I get it if I sell before the record date?
A bond's coupon goes to whoever holds it in demat on the record date, which falls before the payment date; if your sale settles before the record date, the buyer gets that coupon. You still collect the interest earned while you held the bond, because the buyer pays accrued interest: inside the dirty price on the NSE or BSE order book, or as a separate amount on RFQ. A ₹1 lakh bond with a 9% annual coupon pays ₹9,000 to the record date holder.
If the coupon is 9%, do I earn 9%? (YTM vs coupon)
No. The 9% coupon is paid on face value, so what you earn depends on the price you pay: a 3 year bond with a 9% annual coupon bought at ₹1,020 per ₹1,000 face value yields about 8.22% to maturity, and bought at ₹980 it yields about 9.80%. Yields on bonds that repay principal early are accurate rates, but they produce less rupee interest than the same rate on a bond repaid at maturity.
Clean price vs dirty price: do I pay accrued interest?
Yes, you always pay the seller the interest accrued since the last coupon date; the venue only decides whether you see it as a separate line. On the NSE and BSE order book used by broker apps, G-secs, SDLs and listed bonds trade at the dirty price with accrued interest already inside, while the RFQ platform used by bond apps and RBI's NDS-OM quote a clean price and add accrued interest separately.
Which bonds pay monthly interest, and what is the catch?
Monthly interest is a term of each individual bond, set in its offer document, and SEBI requires bond platforms to show coupon frequency for every bond they list, so you can filter for it; Groww, for example, filters by payout frequency. The catch is that a monthly payout says nothing about safety, some monthly payers also repay principal in instalments so the headline yield pays less rupee interest than it seems, and 10% TDS comes off each listed NCD coupon.
Corporate bonds vs government bonds: what is the difference?
Government bonds (G-secs, SDLs and T-bills) are repaid by the central or a state government and can be bought free through RBI Retail Direct from ₹10,000; corporate bonds pay more because repayment depends on one company, and platforms advertise ranges such as 8% to 14% for bonds rated down to BBB. Interest on both is taxed at your slab rate, listed corporate bond interest also carries 10% TDS since 1st Apr 2023, and both can fall in price if rates rise before you sell.
Bonds vs T-bills: what is the difference, and which pays more?
A T-bill is a Government of India bill that matures within a year, pays no coupon and is issued below ₹100, so a 91 day bill allotted at ₹98.25 returns about 7.14% annualised; a bond is a longer loan, to the government or a company, that usually pays a coupon and moves more in price when rates change. Corporate bonds can pay more than T-bills because they add company credit risk, and T-bill returns are taxed at your slab rate as short-term capital gains.
G-sec vs T-bill: what is the difference between government bonds and treasury bills?
Both are Government of India securities bought the same way, by a non-competitive bid from ₹10,000 that is free on RBI Retail Direct, Zerodha and Fyers; the difference is term and how you earn. A T-bill matures within a year and earns only its discount to ₹100, taxed as a short-term capital gain at slab, while a dated G-sec runs for years, pays a coupon taxed at slab, and its price falls further when interest rates rise.
SGB vs gold ETF: which is better?
Neither is better for everyone. An SGB adds interest paid on its issue price and, for an original subscriber who holds to maturity, a tax-free redemption, but no new SGB has been issued since Feb 2024, so buyers now pay an exchange price that has ranged from below gold to about 7% above it, and as reported after Budget 2026 a secondary buyer no longer gets the tax-free redemption. A gold ETF pays no interest and charges an annual expense ratio, but has no maturity date and is bought and sold on the exchange like a share.
Bonds vs mutual funds (debt funds): which is better?
Neither is better in general. A bond you buy directly pays a known coupon and returns face value at maturity if the issuer pays, but your money rides on one company and selling early depends on finding a buyer; a debt mutual fund spreads money across many bonds and can be redeemed at its NAV, but charges an expense ratio and usually has no maturity value. Debt fund gains have been taxed at slab without indexation since 1st Apr 2023, while a listed bond held over 12 months pays 12.5% on its gain.
Bonds vs stocks: what is the difference, and is a bond debt or equity?
A bond is debt: the issuer owes you interest and your principal on set dates, and bondholders are repaid before shareholders if a company fails. A share is part-ownership with no promised payment, so its value rests on the company's profits and the market; bond coupons are taxed at your slab rate, and a listed bond sold after 12 months pays 12.5% on its gain.
Bond vs debenture: what is the difference, and what is an NCD?
For a company, bond and debenture mean the same kind of debt security, and an NCD (non-convertible debenture) is one that cannot be turned into shares; listed corporate bonds and NCDs are both regulated by SEBI as non-convertible securities. Government debt is called a bond, never a debenture, and what changes your risk is not the label but whether the paper is secured, where it ranks and the issuer's lowest rating.
Government bonds
How do I buy T-bills and what yield will I get?
Place a non-competitive bid through RBI Retail Direct or your broker before the weekly auction; you are allotted at the weighted average auction price, the minimum is ₹10,000, and you receive ₹100 per unit at maturity. A 91 day T-bill allotted at ₹98.25 earns 1.78% over 91 days, which annualises to about 7.14%; bids are free on RBI Retail Direct, Zerodha and Fyers and cost 0.06% plus GST at Upstox and HDFC Securities.
54EC bonds: where to buy, limits and lock-in?
54EC capital gain bonds are issued by REC, PFC, IRFC and HUDCO, pay 5.25% a year, lock in for 5 years and cannot be transferred or redeemed early; the maximum is ₹50 lakh and ICICI Direct sets the minimum at 2 bonds of ₹10,000 (₹20,000). You can buy them through brokers such as ICICI Direct and Bonds Kart and on several bond platforms, which SEBI allowed to offer them from 14th Aug 2026, and the interest is taxable at slab with no TDS.
How do I buy G-secs and SDLs?
New G-secs and SDLs are bought as a non-competitive bid in RBI's auctions, either free through RBI Retail Direct or through a broker, from ₹10,000 face value, and you are allotted at the auction's weighted average price. G-secs and SDLs that are already trading can be bought on the NSE or BSE order book through any broker, where the price already includes accrued interest, or on NDS-OM through Retail Direct.
RBI Retail Direct or my broker: which should I use?
RBI Retail Direct is free and holds your G-secs, T-bills, SDLs and SGBs in a gilt account with RBI, but it has no corporate bonds and its secondary market, the NDS-OM odd lot segment, can be thin. A broker keeps the same securities in your demat next to your shares and lets you sell on the exchange; Zerodha and Fyers charge nothing on primary bids, while Upstox and HDFC Securities charge 0.06% of allotment plus GST, about ₹71 on ₹1 lakh.
Why do SGBs trade at a premium or discount to gold?
An SGB on the exchange is priced by buyers and sellers, not by RBI, and it carries more than gold: fixed interest paid on its original issue price, a tax treatment that now depends on whether you subscribed or bought later, and a thin order book. With no new tranche issued since Feb 2024, supply is fixed, so prices have swung both ways, from about 7% above gold to below it.