Paytm Money launches bond platform
The new initiative likely to enable retail investors to invest in govt, corporate and tax-free bond markets
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New Delhi: One97 Communications Limited (OCL), which owns leading mobile payments and financial services company Paytm, on Tuesday announced that its wholly-owned subsidiary Paytm Money Ltd has launched the most advanced bonds platform for retail investors in the country.
The company said it is simplifying bonds for retail investors and enabling them to invest in three types of bonds -- government, corporate and tax-free.
“This is just the start of bonds investing in India. We believe bonds are the best way for first-time investors to enter capital markets and every Indian should have a diversified wealth portfolio with bonds being a core part of it. We will continue to bring the best technology-driven features for investors with the safety and security they deserve,” said Varun Sridhar, CEO, Paytm Money.
Bonds on Paytm money app presents investors all relevant information at one place, and converts everything to yield so investors can analyse and understand the returns they can earn. Now, investors will not have to go to different sources for information on coupon vs yield, clean price Vs dirty price, coupon frequency, coupon record dates etc, and instead, find it all on one dashboard on the Paytm Money app.
According to the company, investing in debt markets in India is still very new and the country has the potential to have 100 million investors, for whom bonds would be the best way to enter capital markets.
As a Sebi-registered broker, Paytm Money is leveraging the existing strong regulatory framework to innovate and bring a simple, secure and transparent bond product to India. It has achieved so with investor safety features such as limit order as the default order types, prices compared across both NSE and BSE, and the best exchange rate pre-selected, credit ratings from multiple rating agencies, with the lowest being the default rating and many more such features.
Currently, Bonds on Paytm Money is being launched with an early access waitlist programme. Tax free bonds are a great investment for Indians. One can invest in tax free bonds, issued by PSUs, like NHAI, IRFC, REC etc at yields of up to 5.8 per cent per annum, and maturity, ranging from 5 months to 13 years.
