Leading Indian brokerage platforms Zerodha and Angel One have received approval from the Securities and Exchange Board of India (SEBI) to offer corporate bonds on their platforms, marking another expansion of the country’s major retail investment apps beyond equities, mutual funds and derivatives. The two companies are currently testing their bond products and related features internally and are expected to launch the services for customers in the coming months.
The move comes as online bond investing gains traction in India and regulators seek to make fixed-income products more accessible to retail investors. Groww has already launched its bond platform, reportedly selling nearly ₹200 crore worth of bonds each month, while rival broker Dhan is also preparing to enter the segment. Nearly 40 firms have received regulatory approval under SEBI’s online bond platform provider framework since its introduction in 2023, highlighting the increasing institutionalization of digital bond distribution.
Zerodha And Angel One Get SEBI Approval For Corporate Bonds
The latest approval allows Zerodha and Angel One to offer corporate bonds through their respective digital investment platforms.
Neither company is expected to launch the service immediately. Both are currently testing the product, technology and features before making the platform available to customers.
Zerodha has indicated that its bond offering could eventually cover both primary public issues of bonds and secondary trading of listed bonds, potentially allowing investors to access a wider range of fixed-income opportunities through its Kite ecosystem.
Zerodha-Angel One Bond Platform At A Glance
| Particular | Details |
|---|---|
| Platforms | Zerodha and Angel One |
| Regulator | SEBI |
| Product | Corporate bonds |
| Approval status | Received |
| Current stage | Internal product testing |
| Expected launch | Coming months |
| Existing major competitor | Groww |
| Another entrant | Dhan, expected to launch |
| Regulatory framework | Online Bond Platform Provider framework |
| Approval landscape | Nearly 40 firms approved since 2023 |
The approvals give both brokers the regulatory foundation to add corporate bonds to their existing investment product suites.
Why Zerodha Is Entering The Bond Market
Zerodha has traditionally built its business around low-cost equity and derivatives trading, but the company has increasingly been expanding its financial-services ecosystem.
The broker has added or developed products across mutual funds, government securities and other investment categories, while also exploring investment banking.
Its move into corporate bonds represents another step toward becoming a broader investment platform rather than an equity-trading application alone.
The company has said it wants to provide investors with a comprehensive suite of investment instruments that allows them to diversify portfolios across asset classes.
Zerodha’s Potential Bond Offering
Zerodha Platform
↓
Corporate Bonds
↓
Primary Bond Issues
+
Secondary Trading
↓
Retail Investors
↓
Portfolio Diversification
↓
Equity + Fixed IncomeThis strategy could increase the amount of time and money customers keep within Zerodha’s ecosystem.
Angel One Also Targets Fixed-Income Investors
Angel One is taking a similar approach by expanding beyond its traditional broking business.
The company’s Chief Business Officer for Direct Business, Arief Mohamad, said the company is focused on providing safe and reliable investment products and is working toward rolling out its bond offering in the coming months.
For Angel One, corporate bonds could provide another avenue to engage investors who want returns beyond equities but prefer to remain within a familiar digital investment platform.
Potential Benefits For Angel One
| Opportunity | Potential Benefit |
|---|---|
| Corporate bonds | New investment product |
| Fixed-income customers | Broader customer base |
| Cross-selling | More products per user |
| Portfolio diversification | Greater customer engagement |
| Digital distribution | Lower friction for investors |
| Recurring investment activity | Potential additional revenue |
The bond business could therefore complement Angel One’s existing equity, mutual fund and other investment offerings.
Groww Has Already Entered The Bond Market
The competitive landscape is already developing.
Groww, India’s largest brokerage by active investors according to the report, launched its bond platform in May. It has reportedly been selling approximately ₹200 crore worth of bonds every month since the launch.
This early traction is significant because it suggests there is demand for digital access to fixed-income securities.
Groww’s entry also creates a benchmark for Zerodha and Angel One as they prepare their own offerings.
Digital Bond Market Competition
| Platform | Bond Offering Status |
|---|---|
| Groww | Already launched |
| Zerodha | SEBI approval; testing |
| Angel One | SEBI approval; testing |
| Dhan | Expected to launch |
| Other approved platforms | Nearly 40 firms since 2023 |
The growing number of platforms could make corporate bonds considerably easier for retail investors to discover and purchase.
Dhan Is Also Preparing To Launch
Zerodha and Angel One are not the only established brokerage firms preparing to enter the market.
Dhan is also expected to launch a corporate bond platform in the coming months, according to the report.
This indicates that competition among digital brokers is shifting from simply offering cheaper equity trading toward building broader wealth-management ecosystems.
The trend could eventually make bonds as easy to access through mobile applications as mutual funds and stocks are today.
Why Corporate Bonds Matter For Retail Investors
Corporate bonds represent debt issued by companies to raise capital.
When an investor purchases a corporate bond, the investor effectively lends money to the issuer in return for interest payments and repayment of principal according to the bond’s terms.
Unlike equity, the investor does not receive ownership in the company simply by buying its bonds.
Equity Vs. Corporate Bonds
| Feature | Equity Shares | Corporate Bonds |
|---|---|---|
| Investor position | Shareholder | Creditor |
| Return | Capital gains + dividends | Interest + principal repayment |
| Ownership | Yes | No |
| Income predictability | Generally lower | Generally higher if issuer performs |
| Market risk | High | Varies by credit quality and duration |
| Default risk | Company-specific | Company-specific |
| Maturity | Usually none | Defined maturity |
| Priority in liquidation | Lower | Generally higher than equity |
Corporate bonds can therefore add a fixed-income component to portfolios, although they are not risk-free.
Credit quality, interest-rate movements, liquidity and the financial condition of the issuer can all affect returns.
SEBI’s Online Bond Platform Framework Is Expanding
The growth of online bond platforms follows regulatory changes introduced by SEBI to create a more structured environment for digital distribution of debt securities.
Nearly 40 firms have received regulatory approval since 2023, according to the report.
The framework is intended to provide greater transparency and regulatory oversight as online platforms connect investors with bond issuers and secondary-market opportunities.
Online Bond Platform Growth
SEBI Framework
↓
Online Bond Platforms
↓
More Regulated Intermediaries
↓
Digital Bond Distribution
↓
Greater Retail Access
↓
Potentially Higher Retail ParticipationThe development is particularly relevant because India’s retail participation in corporate bonds has historically remained much lower than participation in equities and mutual funds.
Bond Market Remains A Niche Segment
Despite the recent growth, corporate bonds remain a relatively small part of India’s retail investment landscape.
Zerodha’s head of passive investment products, Neelesh Verma, acknowledged that bonds remain a niche segment with relatively low retail awareness compared with equities. He also said it remains difficult to estimate the ultimate size of the opportunity.
The challenge is partly educational.
Retail investors are generally more familiar with stocks, mutual funds and fixed deposits than with corporate debt securities.
Why Retail Bond Adoption Has Been Limited
| Challenge | Impact |
|---|---|
| Low awareness | Investors may not understand bonds |
| Credit risk | Issuer default can affect returns |
| Liquidity | Some bonds may be difficult to sell |
| Ticket sizes | Certain bonds may require larger investments |
| Complexity | Yield and maturity calculations can be unfamiliar |
| Limited historical access | Traditional distribution was less digital |
Digital platforms could address some of these barriers by making bond information, pricing and transaction processes easier to understand.
Market Volatility Is Driving Interest In Fixed Income
The expansion of digital bond platforms also comes amid changing investor preferences.
The report notes that market volatility and lower equity returns over the past two years have encouraged some consumers to look beyond equities for alternative sources of returns.
This does not mean investors are abandoning stocks.
Instead, investors are increasingly considering a combination of asset classes.
Portfolio Diversification Model
Investor Portfolio
↓
┌──────┼──────┐
↓ ↓ ↓
Equity Bonds Mutual Funds
↓ ↓ ↓
Growth Income Diversification
↓
Risk ManagementCorporate bonds can potentially occupy the fixed-income component of such a portfolio.
Digital Brokers Want More Revenue From Existing Customers
For Zerodha and Angel One, entering bonds also has a commercial rationale.
Acquiring a new customer can be expensive, while offering additional products to an existing customer can increase the value of that relationship.
A customer who already uses a brokerage platform for stocks could potentially buy bonds without opening an account with another financial intermediary.
Platform Economics
| Strategy | Potential Outcome |
|---|---|
| Add bonds | More products |
| Cross-sell to existing users | Higher customer value |
| Increase engagement | More frequent platform use |
| Offer multiple asset classes | Stronger retention |
| Build wealth platform | Reduce dependence on trading |
This broader-platform strategy is increasingly visible across India’s fintech industry.
Zerodha Wants Primary And Secondary Bond Trading
One of the more ambitious aspects of Zerodha’s plan is its intention to eventually facilitate both primary public bond issues and secondary trading of listed bonds directly through Kite.
Primary-market access would allow investors to participate when companies issue new bonds.
Secondary-market trading would allow investors to buy or sell already-listed bonds before maturity, subject to market liquidity.
Two Ways To Invest In Bonds
| Market | How It Works |
|---|---|
| Primary market | Investor buys newly issued bonds |
| Secondary market | Investor buys/sells existing listed bonds |
| Main consideration | Yield and credit quality |
| Additional secondary-market factor | Liquidity and prevailing interest rates |
If Zerodha successfully integrates both markets, its bond offering could become significantly broader than a simple marketplace for new bond issues.
Corporate Bond Market Has Grown Rapidly
According to the report, India’s bond market grew sevenfold in the last financial year, although the report does not provide a specific absolute market-size figure for that comparison.
The sharp growth highlights the increasing interest in fixed-income products.
However, growth from a relatively small base can produce a large percentage increase, so the longer-term opportunity will depend on whether retail participation continues to expand.
Factors Supporting Bond-Market Growth
- Greater retail awareness
- Online distribution
- SEBI regulation
- Demand for predictable income
- Portfolio diversification
- Equity-market volatility
- Growth of fintech investment platforms
- Easier digital KYC and transactions
What This Means For Investors
The entry of major brokers could make corporate bonds easier to access, compare and purchase.
However, increased accessibility does not remove investment risk.
Investors will still need to examine the issuer’s credit rating, financial position, maturity period, coupon rate, yield to maturity, security or collateral, and liquidity before investing.
A bond offering a higher yield may also carry greater credit risk.
Key Factors To Check Before Buying A Corporate Bond
| Factor | Why It Matters |
|---|---|
| Credit rating | Indicates assessed credit quality |
| Coupon | Determines scheduled interest |
| Yield to maturity | Measures expected return if held to maturity |
| Maturity | Determines investment horizon |
| Issuer financials | Helps assess repayment capacity |
| Security | Determines whether assets back the debt |
| Liquidity | Affects ability to exit early |
| Default risk | Determines potential loss |
The expansion of online bond platforms should therefore be viewed as an accessibility development, not as a guarantee of investment safety.
A New Battle For Retail Investment Wallets
Zerodha and Angel One’s entry could intensify competition among India’s digital wealth platforms.
The battle is increasingly moving beyond brokerage fees.
Platforms are attempting to become one-stop destinations where customers can buy stocks, mutual funds, bonds, government securities and other investment products.
India’s Evolving Digital Investment Platform
Traditional Brokerage
↓
Stocks + Derivatives
↓
Mutual Funds
↓
Government Securities
↓
Corporate Bonds
↓
International Assets
↓
Comprehensive Wealth PlatformThis evolution could reshape how Indian retail investors manage their portfolios over the next several years.
The Bigger Picture
Zerodha and Angel One’s SEBI approval to offer corporate bonds represents another step in the expansion of India’s digital investment ecosystem. Both brokers are testing their products before launch, while Groww has already established a presence in the segment and Dhan is preparing its own offering. The growing number of approved online bond platforms suggests that regulators and financial companies see significant potential in bringing fixed-income investing to retail investors through digital channels.
For Zerodha and Angel One, the move also represents a strategic shift toward broader financial-product ecosystems. Corporate bonds can give existing customers another reason to remain within the platform while potentially reducing dependence on equity-trading activity. For investors, increased competition could improve accessibility and product choice, but it also makes investor education more important because corporate bonds carry credit, liquidity and interest-rate risks.
Looking Ahead
The immediate focus will be on the launches of Zerodha and Angel One’s bond platforms. Both companies are currently testing their products, and Zerodha has indicated that it wants to eventually support both primary public bond issues and secondary trading of listed bonds. If these services are integrated smoothly into existing investment platforms, buying corporate bonds could become considerably simpler for retail investors.
The longer-term opportunity will depend on whether digital distribution can move corporate bonds from a niche investment product into a mainstream component of retail portfolios. With Groww already reporting monthly bond sales of nearly ₹200 crore and several other major brokers entering the market, competition is likely to increase. The key challenge for the industry will be balancing easier access with adequate disclosure, risk awareness and investor protection
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