Large brokerage firms Zerodha and Angel One have received approval from the Securities and Exchange Board of India (SEBI) to introduce corporate bonds on their investment platforms, signalling growing competition in India’s retail fixed-income market, Moneycontrol reported.
According to the report, both brokers are currently testing their bond offerings and related features internally and are expected to make the products available to customers over the next few months. Dhan is also reportedly preparing to introduce corporate bonds on its platform.
Groww leads as brokers expand into bonds
Groww, India’s largest brokerage by active investors, entered the corporate bond market in May. The platform is currently facilitating bond sales worth nearly ₹200 crore every month, according to sources cited by Moneycontrol.
The online bond platform ecosystem operates under SEBI’s Online Bond Platform Provider framework. Since its introduction in 2023, nearly 40 entities have secured regulatory approval to operate such platforms.
According to the report, Angel One said its focus remains on providing reliable investment products and that it is working towards launching the bond offering in the coming months.
Zerodha, meanwhile, said regulatory changes, including the reduction in minimum face value or ticket size, have made bonds more accessible to retail investors.
The brokerage is working on enabling both primary public bond issues and secondary trading of listed bonds through its Kite platform.
Retail investors look beyond equities
India’s retail bond market remains relatively small, with around one million investors, although participation increased nearly sevenfold during the previous financial year.
Zerodha noted that awareness of bonds among retail investors remains significantly lower than that of equities, making the market’s long-term potential difficult to assess.
Brokerages have already provided investors access to government securities, Treasury Bills and State Development Loans through exchange-based non-competitive bidding mechanisms.
However, increased volatility in equity markets and relatively subdued returns have encouraged investors to diversify beyond stocks. Corporate bonds are consequently emerging as another avenue for investors seeking fixed-income opportunities and portfolio diversification.
