Bondskart, the first such instrument from a diversified traditional financial services player, is expected to hit the market in early December.
âBondskart.com will help create liquidity and respond globally to the strong appetite of retail investors and high net worth investors to invest in bonds,â said Vishal Kampani, Managing Director of JM Financial Products. âBondskart.com aims to dramatically simplify bond investing for investors and further deepen the overall bond market. ”
The proposed application will likely include corporate bonds rated in the broad range of investment grade triple-A and triple-B.
In India, the highest rated papers are mainly traded on the secondary market. Lower rated papers find little liquidity. About 86% of the bonds in circulation belong to the first three categories – AAA, AA + and AA.
The Bondskart platform will also advise on investment decisions, regularly assessing creditworthiness, current trends and options available in the market, officials said.
An individual can buy or sell bonds through this application where the dedicated institutional fixed income team of JM as well as a technical team of a dozen people will ensure the liquidity and the smooth running of the operations.
âSeniors and seasoned retail investors need stable interest income, which has reached an all time high in recent years,â said Ajay Manglunia, managing director of institutional fixed income at JM Financial. “Through this app, they will get a platform to play in the fixed income market and choose from an organized portfolio of securities.”
He said people are now looking to allocate a decent portion of their investment to regular income credits as stock valuations have peaked.
JM Financial, traditionally known for managing fundraising, entered the debt capital market about three years ago. She hired Ajay Manglunia, a seasoned investment banker, as the segment manager.
The dedicated team will create an inventory of corporate bonds while helping corporate borrowers organize local bond sales.
Investors can not only earn coupons, but also expect capital appreciation if they subsequently sell bonds for a lower yield.
As a regulator of the capital market, the Securities Exchange Board of India has looked into the development of the still shallow corporate bond market. It had previously set up an internal working group, which deliberated on the issue of introducing market makers into the corporate bond market gradually, apart from other measures allowing this space to be sufficiently safe and secure. attractive to retail players.
The retail bond business is gaining ground globally. BondEvalue, a Singapore-based fintech, has become the world’s first fractional bond exchange where investors can freely trade bonds in the secondary and primary markets. Bondskart will work on similar lines.