How SEBI and Fintech Apps Are Opening India’s ₹40 Lakh Cr Bond Market

India's corporate bond market, valued at ₹40 lakh crore, is now accessible to retail investors due to SEBI's reduction of the minimum investment from ₹1 lakh to ₹10,000, facilitating broader participation

Fintech platforms like Groww, Wint Wealth, and Stable Money are pivotal in this change, enabling investors to easily access bonds through user-friendly apps, which has increased retail investor engagement significantly

Historically, corporate bonds were largely inaccessible to average investors due to high minimum investments and complex procedures, but recent reforms have democratized this asset class

The shift allows investors to achieve stable returns of 9–12% with low volatility, making corporate bonds an attractive option for entrepreneurs, high-net-worth individuals, and those seeking to preserve capital

SEBI's regulatory changes have not only increased accessibility but have also initiated a structural transformation in India's financial landscape, encouraging more people to explore fixed-income investments

Platforms like Groww have demonstrated the potential of retail participation, with a significant percentage of corporate bond subscriptions coming from retail investors despite minimal marketing efforts

Corporate bonds offer a stable alternative to equities and are particularly appealing to those looking to diversify their portfolios and reduce risk amid stock market volatility

The evolving bond market is a boon for retirees, salaried professionals, and entrepreneurs who seek predictable returns and financial stability, balancing the often unpredictable nature of business and stock market investments

This transformation in India's bond market is likened to the UPI revolution in digital payments, expanding access to a previously exclusive asset class and promoting disciplined investing

As India's savings culture matures, the bond market's expansion is seen as a long-term structural change rather than a temporary trend, providing a stable investment avenue for millions of Indians