Investors can invest in Bonds through Primary Issue Bonds & the Secondary market route. The Bonds market offers investors the option to invest in fixed coupon instruments through the Primary & Secondary market route. However, these two markets are very different and provide investors with different opportunities.
Primary Issue Bonds
Primary Issue Bonds are bonds which are issued to Institutional & HNI investors directly by way of allotment through Private Placement Offering or Public Issue offering. The minimum investment amount for most of the Private Placement issue is Rs.1 Crore and for Public Issue offering is Rs.10,000.
Majority of transactions in the bond market take place through secondary market route. Most Institutional & HNI investors purchase bonds through the primary market and then sell them to investors in the secondary market by charging a premium on purchase price of bonds through a bond broker (A bond broker is the one who facilitates the investor for purchasing the bonds that are needed). There¿s no minimum investment amount required to trade in Secondary bond market.
The Tata Capital Wealth Products Distribution team has tied up with a few bond brokers to provide the best offers for our clients who are looking for fixed income products in both the Primary and Secondary bonds market.