SEBI's OBPP (Online Bond Platform Provider) framework opened up the listed debt market to retail investors. AAA-rated corporate NCDs, tax-free PSU bonds, and Sovereign Gold Bonds are accessible at lot sizes Indian retail can afford.
In one paragraph
A bond is a loan you make to a corporate or sovereign issuer at a fixed coupon for a fixed tenure. Listed bonds in India typically yield 7.5–9.5% for AAA-rated corporates (FY26), versus 7.0–7.5% for SCB FDs — the premium is the credit and liquidity risk. NCDs and PSU bonds trade on BSE/NSE debt segments; the RFQ-routed flow under OBPP regulations brings transparent prices to retail.
AAA / AA+ corporate NCDs from Bajaj Finance, HDFC, M&M Financial, Sundaram Finance, etc.
Tax-free bonds from NHAI, REC, PFC (older issues; new issuances rare).
Sovereign Gold Bonds (SGB) — sovereign-backed; redeemed at gold price + 2.5% annual coupon.
Government Securities (G-Secs) via RBI Retail Direct (we will signpost; we don't transact G-Secs).
Lot sizes typically ₹10,000–₹1 lakh per bond — accessible to most retail.
Why this is currently lead-only
OBPP registration with SEBI is in progress. The SEBI NCS Regulations (amended Nov 14, 2022) and the operating circular (June 16, 2023) require OBPP registration before transacting in listed bonds for retail investors. We will not even build a 'Buy' button until our OBPP registration is in hand. In MVP, a partner OBPP handles the transaction; we receive a callback request and our advisor walks you through it.
OBPP registration pending; transactions enabled in Phase 2. Lead-only flow in MVP. No transaction will be initiated by PSS Ventures on bonds without OBPP registration. RBI Retail Direct (G-Secs) is a separate platform operated by RBI; we link to it as a public service but do not transact on it.
Start with who is borrowing. A sovereign issuer (G-Secs via RBI Retail Direct, Sovereign Gold Bonds) carries the credit of the government itself. A corporate issuer carries its own, which is what the rating agency is grading — AAA-rated issuers have historically defaulted far less often than sub-AA ones. Read the rating, then read what happens to you in a default before you go below AA.
Are bonds liquid?
Less than equity. Most NCDs trade in lots of ₹10,000–₹1 lakh on BSE/NSE debt; secondary-market volumes are thin. Plan to hold to maturity unless the bond has demonstrated weekly trading volume.
How is bond income taxed?
Coupon income is taxed at slab rate. Capital gains on sale before maturity: STCG at slab (if held ≤12 months for listed bonds), LTCG at 12.5% above ₹1.25L. Tax-free bonds: coupon is fully exempt under Section 10(15).
What is OBPP?
Online Bond Platform Provider — a SEBI regulatory category created in Nov 2022 to allow regulated entities to offer listed debt to retail. OBPPs route orders via the BSE/NSE RFQ platform with ICCL/NSCCL clearing. Without OBPP registration, taking a single rupee of bond purchase from a retail investor is non-compliant.