How to buy bonds in India - a beginner's walkthrough
Buying a listed bond today takes about 15 minutes online. You need a demat account, a platform, and the ability to read three numbers: YTM, rating, and maturity. Here is the whole process.
Step 1 - Open a demat account
Bonds settle into the same demat account you'd use for shares. Any SEBI-registered broker (Zerodha, Groww, Upstox, a bank broker) works. Already have one? Skip ahead.
Step 2 - Pick where to buy
- Online Bond Platform Providers (OBPPs) - SEBI-regulated since 2022: Wint Wealth, GoldenPi, Grip Invest, Jiraaf and Bondscanner. Curated selection, minimums from ₹10,000 (some ₹1,000).
- Exchanges directly - NSE/BSE debt segment through your broker. Widest selection, thinner liquidity on many series.
The same bond (same ISIN) can show different effective yields on different platforms - that's the exact gap RightBonds exists to expose. Compare before you buy.
Step 3 - Compare YTM, not coupon
YTM is your actual annualised return if held to maturity at today's price; the coupon is just the sticker interest on face value. Then check the credit rating (see ratings explained) and the maturity date against when you need the money. Right now listed yields run up to 15% (average 10.5%) versus roughly 6-7% on FDs - the spread is credit risk, priced. Weigh it deliberately: our bonds vs FD guide covers the trade.
Step 4 - Place the order
KYC on the platform (PAN + demat details), pick the bond, enter units. Orders route through the exchange RFQ system; you pay by UPI or net banking from your own bank account. The platform never custodies your money - settlement runs through the clearing corporation.
Step 5 - Delivery and after
Units typically credit to demat the same or next working day. Coupons auto-pay to your linked bank account on schedule; principal returns at maturity. To exit early, sell on-exchange at market price.
Where your bonds live: NSE, BSE, NSDL and CDSL
Many bonds in India trade on the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), making them accessible to retail investors through demat accounts. Exchange-listed bonds offer price transparency and secondary-market liquidity compared to unlisted alternatives.
Bonds held in demat form are custodied by NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited). Bonds you buy sit in a demat in your name - most platforms link your existing demat, and a few open one for you free during signup.
Yields up to 15%, sortable by YTM, rating and minimum investment.
Frequently asked questions
Ready for your first bond?
Fifteen minutes, five steps - your existing demat works.
Pick your first bondWhat is the minimum amount to invest in bonds in India?
Since SEBI cut face values, many listed corporate bonds have a minimum of ₹10,000, and some trade at ₹1,000 on the exchanges. Platform minimums vary per bond - RightBonds shows the minimum for every listing.
Do I need a demat account to buy bonds?
Yes, for listed bonds. Units are credited to your demat account and coupons are paid to your linked bank account.
Are online bond platforms legal and regulated?
Yes. Since 2022, SEBI regulates Online Bond Platform Providers (OBPPs). Orders route through exchange RFQ systems and settle via clearing corporations - the platform never holds your money or bonds.
Which bond should a beginner buy first?
A common starting point is a AAA or AA rated bond maturing in 1-3 years, bought with a small amount to learn the flow. Never concentrate savings in a single issuer.