You can now invest in many listed corporate bonds with as little as Rs 10000. Earlier the minimum was Rs 1 lakh, which kept most ordinary savers out. SEBI changed this through a circular dated 3 July 2024, and corporate bonds are now within reach of regular retail investors.
Before July 2024, listed corporate bonds sold on private placement basis carried a minimum face value of Rs 1 lakh per unit. That single rule shut out small investors. SEBI lowered it so the market could deepen and ordinary people could take part.
| Point | Before 3 July 2024 | Now |
|---|---|---|
| Minimum face value per bond | Rs 1,00,000 | Rs 10,000 |
| Who could realistically buy | Mostly institutions and HNIs | Retail investors too |
| Issuer condition | Standard rules | Must appoint at least one merchant banker |
| Type of bond allowed at low value | Not applicable | Plain interest or dividend bearing, fixed maturity |
| Zero-coupon bonds at Rs 10000 | Not allowed | Allowed from 18 December 2025 |
The conditions matter. To issue at the lower Rs 10000 value, the issuer must appoint at least one merchant banker, and the security must be a plain vanilla interest or dividend bearing instrument with a fixed maturity. A later SEBI circular dated 18 December 2025 extended the Rs 10000 denomination to zero-coupon debt securities that have a fixed maturity and no complex payout structure.
A corporate bond and a bank FD both pay you a return, but they are not the same thing. Know the difference before you put money in.
| Feature | Corporate bond | Bank fixed deposit |
|---|---|---|
| What it is | A loan you give to a company | A deposit with a bank |
| Who guarantees it | The company only | Bank, plus DICGC cover up to Rs 5 lakh |
| Return | Often higher coupon | Usually lower interest |
| Main risk | Company may default or delay payment | Very low if within DICGC cover |
| Can you exit early | Sometimes, by selling on exchange or platform | Yes, often with a penalty |
| Regulator | SEBI | RBI |
The higher return on a corporate bond is the reward for taking more risk. Never assume a bond is as safe as an FD just because both pay regular income.
An Online Bond Platform Provider is a SEBI-registered platform that lets you browse and buy listed bonds online, much like buying a share. To be an OBPP, the platform must first register as a stock broker in the debt segment of a recognised stock exchange and then get SEBI registration.
Be clear-eyed. A corporate bond can lose you money in ways an FD usually will not.
Tax rules on bonds are not the same as on bank FDs, so plan ahead.
This is general information, not tax advice. Your final tax depends on your total income. Check with a tax professional for your own case.
Dr. Shrawan Kumar Pathak, a retired teacher, had Rs 50000 sitting idle in his savings account. Earlier he could not buy a single listed corporate bond, because each one needed Rs 1 lakh. After the SEBI change, he opened an account on a SEBI-registered OBPP, finished his KYC, and bought five units of a AA-rated corporate bond at Rs 10000 each. He first read the rating report and the issuer finances. He kept the rest of his money in a bank FD for safety. This split let him earn a higher coupon on part of his savings while not betting everything on one company. The figures here are only an illustration to show how the rule works.
For eligible listed bonds issued on private placement basis, the minimum face value is now Rs 10000, down from Rs 1 lakh, after the SEBI circular dated 3 July 2024.
No. A bank FD enjoys DICGC cover up to Rs 5 lakh. A corporate bond has no such guarantee. If the company defaults, you can lose interest or principal.
An Online Bond Platform Provider is a SEBI-registered platform that lets retail investors buy listed bonds online. It must first register as a debt-segment stock broker and then get SEBI registration.
Check the official list of registered OBPPs on the SEBI website at sebi.gov.in before you sign up or transfer any money. Use only a registered platform.
Yes. The bonds are credited to your own demat account, and you also need a PAN and a bank account to complete KYC and pay.
Yes. A SEBI circular dated 18 December 2025 extended the Rs 10000 denomination to zero-coupon debt securities that have a fixed maturity and no complex payout structure.
Interest or coupon is added to your income and taxed at your normal income tax slab rate. Capital gain on sale is taxed separately.
Sometimes. You may be able to sell on the platform or exchange, but a buyer is not guaranteed and the price can move up or down.
It is an opinion on how likely the issuer is to repay. A higher rating like AAA signals lower risk than a lower rating. It is a guide, not a guarantee.