In India, corporate bonds sell to start-up firms by retail investors. At least ten new financial technology platforms have sprung up during the pandemic, intending to invest a share of the $ 1.9 trillion in the market for bank time deposits.

The company has promised to pay a higher interest rate as possible, putting the money with them, generally seen as riskier higher-yielding debt.

The firms are riding on efforts by the Reserve Bank of India to encourage retail investment in sovereign debt as it grapples with the government’s record borrowing plan. There is more risk for those investors who choose to venture into corporate bonds.

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Supporting the firms’ efforts by the RBI to appreciate retail investors in sovereign debt as the plan to grasp government borrowing records. There are more risks for those who choose to venture into corporate bonds.

Franklin Templeton’s decision to wind up some of its India debt funds in 2020 and the restructuring of Yes Bank in the same year resulted in bondholders losing their entire investments.

“We handpick bonds, study the cash flow of the issuing company, make a thorough risk assessment before offering any corporate bond,” said Ajay Manglunia, managing director and head of institutional fixed income in Mumbai at JM Financial Products Ltd., which runs BondsKart.com. Manglunia was formerly head of the bond markets team at Edelweiss Financial Services Ltd., one of India’s largest non-bank financial firms.