Invest in Corporate Bonds, Rated A or Higher

Investments starting at ₹10,000
Stock exchange listed
Earn 8-11% Pre-Tax YTM

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ABOUT CORPORATE BONDS

What is Corporate Bonds investing?

Corporate Bonds are financial instruments (or securities) through which companies (or “Issuer”) raise debt from investors. The capital raised is used to achieve business objectives such as starting new projects, scaling existing businesses, or working capital needs.
Investors who buy bonds are lending money to the Issuers. In return, the companies enter a binding commitment to make interest payments and repay the principal amount with a predetermined periodicity until the maturity date.
Corporate Bonds are expected to provide a fixed rate of return to the investors, that is higher than the other less risky fixed income instruments such as Fixed Deposits.

OPPORTUNITY CURATION

How we evaluate Corporate Bonds investment opportunities

Downside Protection

Curate Corporate Bonds that are secured. The value of the security is usually higher than the principal of the loan; hence, in a draconian scenario, the investors have a higher probability of recovering their capital.

Investment Grade Rated

Identify Corporate Bonds that are rated by reputed credit rating agencies such as CRISIL, ICRA, or India Ratings (Fitch), and are investment grade rated, implying a low risk of default.

Liquidity and Tradability

Select Corporate Bonds that are in dematerialized form and listed on the stock exchanges to enable secondary trading, should the investor need to exit before maturity.

For your Knowledge

Risks Involved

While bonds are generally capital-protected and carry investment grade ratings, the bond issuer may not be able to pay back in draconian circumstances such as bankruptcy.
While bonds are listed on exchanges, they might not be actively traded. For an exit prior to the maturity date, the investor may have to find an alternate buyer. Grip does not guarantee the ability to find such a buyer and a fair exit price.
There is an inverse relationship between interest rates and the price of a bond. If interest rates increase, the price of a bond may fall, and the investor may have to incur losses if they sell the instrument before the maturity date.

FAQs

Is Grip sourcing Corporate Bonds investments?

Grip acts as distributor of the bonds sourced from partner institutions such as Oxyzo Financial Services. All investments in Corporate Bonds are executed by Grip Broking Private Limited.

Who can issue bonds?

All entities which satisfy the eligibility conditions specified under the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021 and/ or SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 can issue bonds to raise funds.

What are the different types of bonds?

There are 2 types of bonds: Listed and Unlisted. Listed bonds are traded through an exchange such as BSE or NSE. Unlisted bonds are not traded on an exchange but through the over-the-counter (OTC) market. Market makers facilitate the buying and selling of unlisted bonds in the OTC market. Because they are not exchange traded, unlisted bonds can be less liquid than listed bonds.

Is having a demat account compulsory for investing in bonds through stock exchanges?

Yes, having demat account is compulsory for investing in bonds through stock exchanges.

How are the bonds secured?

Secured corporate bonds are backed by collateral that the issuer may sell to repay you if the bond defaults. The issuer pledges specific collateral—such as property, equipment, or other assets that it owns—as security for the bond. If the issuer defaults, holders of secured bonds will have a legal right to sell the collateral to satisfy their claims.

What is a credit rating? Is credit rating mandatory for issuance and listing of bonds?

SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 makes it mandatory for the issuer to obtain at least one credit rating from the registered credit rating agencies and the same shall be disclosed in the offer document. Provided that where the credit ratings are obtained from more than one credit rating agency for the issue, all the ratings, including the unaccepted ratings, shall be disclosed in the offer document.

How are Corporate Bonds rated?

Ratings represent the creditworthiness of the bond after evaluating key metrics including the issuer’s financial strength, previous track record, and liquidity.

How is Grip Broking enabling Corporate Bonds investments at lower ticket sizes?

The bonds selected by Grip Broking have a face value ranging from INR 100 to INR 1 Lakh. Grip Broking is not fractionalizing any of these bonds but is selling at minimum lot sizes.

Is Grip Broking sourcing Corporate Bonds investments?

Grip Broking acts as a distributor of the bonds sourced from partner institutions such as Oxyzo Financial Services, etc.

What is the mechanism for redressal of any grievances against any issuers or intermediaries?

Investors should first approach the concerned issuer/ intermediary with their complaint. If the complaint remains unresolved, the investors may approach SEBI for facilitating redress of their complaints. SEBI has a web based centralized grievance redress system called SEBI Complaint Redress System (SCORES) available at www.scores.gov.in where investors can lodge their complaints against issuers of securities or any other intermediaries involved in the allotment of the said securities.

Can I withdraw my funds before the maturity period of the bond?

Bonds are tradable instruments on the stock exchange. This means that there is no lock-in on your bond investment. If you want to sell the instrument before maturity, you can do so in the secondary market at the market price (market price may vary from par-value).