Upstox Gets SEBI Approval To Sell Corporate Bonds Directly

Online broking platform Upstox has secured regulatory approval to operate as an Online Bond Platform Provider (OBPP), enabling it to offer corporate bonds directly to investors.

The Securities and Exchange Board of India (SEBI) has granted the licence, according to a report by Moneycontrol.

The move places Upstox alongside competitors Groww, Zerodha and Angel One, which are expanding beyond equity trading into fixed-income products.

As per the report, Upstox plans to introduce corporate bonds, government securities and Sovereign Gold Bonds (SGBs), with investments starting at Rs1,000, the source said.

Previously, the Mumbai-based brokerage offered bonds through a partnership with IndiaBonds. The new licence allows it to provide these products directly.

Its initial bond selection is expected to include instruments rated between AAA and BBB-, depending on availability.

The company intends to prioritise relatively lower-risk securities.

Corporate bonds can offer returns ranging from 8% to 16%, although higher yields generally involve greater default risk.

Investors may also sell bonds before maturity, provided buyers are available and market conditions permit.

Bond platforms typically curate their offerings to manage exposure to riskier debt instruments, particularly as investor awareness remains limited.

Nearly 40 companies have received approval to operate as OBPPs since 2023, following SEBI's introduction of a regulatory framework requiring registration through stock exchanges.

The bond platform forms part of Upstox's broader strategy to diversify beyond domestic equities.

The brokerage recently introduced US stock investing, providing access to more than 8,000 American-listed companies.

Its offering includes major companies such as Apple, Tesla, Amazon and Google.

Fractional investing allows customers to purchase portions of shares with investments starting at $1.

Groww, Zerodha and Angel One have also pursued US investing through GIFT City after receiving approval from the International Financial Services Centres Authority (IFSCA) in June.

Upstox has raised approximately $220 million across six funding rounds.

Its investors include the late Ratan Tata, Tiger Global, Kalaari Capital and Stride Ventures. The brokerage's last reported valuation stood at $3.5 billion.