Online bond platforms push fund to protect retail bond investors
Online bond platform providers (OBPPs) are pushing for an investor protection fund to make corporate bonds less risky for everyday investors.
The fund would cover losses up to a limit if companies default, making it easier and safer for more people to invest.
This idea was discussed at the Global Fintech Fest 2026.
Industry backs issuer risk linked premiums
Industry experts say linking the fund's premium to issuer risk, kind of like deposit insurance, could lower costs for companies and help more people trust the market.
Harish Reddy, co-founder at Stable Money, believes this could boost confidence, since regulators are seeking to deepen retail participation in corporate bonds.
Securities and Exchange Board of India, or Sebi, has also been working on measures like a color-coded Credit Risk-o-Meter to help investors better understand risks.
An NBFC defaulting on bonds has shown why stronger protection is needed, so these changes aim to make bond investing safer and more appealing for retail investors.