PB Money, operated by PB Marketing and Consulting Private Limited, a wholly owned subsidiary of PB Fintech, has received a licence from the Securities and Exchange Board of India to operate as an Online Bond Platform Provider in India. The approval, announced on 27 October 2026, allows PB Money to manage the full retail bond journey from investor onboarding and KYC to order placement and post investment servicing. Through a partnership with Paisabazaar, investors will discover bond offerings on Paisabazaar and complete transactions on PB Money.
What Is PB Money and What Is an OBPP?
PB Money is an investment platform operated by PB Marketing and Consulting Private Limited, a wholly owned subsidiary of PB Fintech. PB Fintech is the listed parent of Policybazaar and Paisabazaar and was listed on Indian stock exchanges in 2021. PB Money holds SEBI registration number INZ000333532 and NSE member code 90494.
An Online Bond Platform Provider (OBPP) is a company that runs a digital platform for buying and selling bonds under SEBI rules. The Securities and Exchange Board of India (SEBI) is the statutory regulator for the securities market in India. SEBI was set up on 12 April 1988 as a non statutory body and received statutory powers on 30 January 1992 under the SEBI Act, 1992. SEBI is headquartered in Mumbai with regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.
To act as an OBPP, a company must be incorporated in India and register with SEBI as a stockbroker in the debt segment of a recognised stock exchange. PB Money meets this test. It is registered as a stockbroker in the debt segment of the National Stock Exchange of India (NSE). This allows it to offer new bond issues and trading in secondary market bonds and debentures through the exchange system.
How the PB Money Paisabazaar Partnership Works
The partnership divides roles between discovery and execution. Paisabazaar acts as the front door where consumers first see the bond offering. PB Money then handles the complete regulated journey and the actual transaction.
Under the licence, PB Money will manage investor onboarding, Know Your Customer (KYC) verification, bond discovery and comparison, order placement, payment coordination and post investment servicing. KYC is the standard identity check that financial firms must complete before opening an investment account. Post investment servicing includes holding updates, interest payouts and maturity handling.
Paisabazaar brings scale to this model. Paisabazaar was founded in 2014 in Gurugram and is part of PB Fintech. It started as a marketplace for loans and credit cards and launched free credit score checks in 2017. The company reports more than 58 million consumers across 850 cities and towns who have checked scores from all four credit information companies in India. Users who arrive to check scores or compare credit products will now also be able to explore bonds and move to PB Money to invest.
How Bonds Work in India
A bond is a loan made by an investor to a borrower. The borrower can be a company, a bank or the government. The investor receives regular interest and gets the principal back on maturity.
In India, three terms define every bond. Face value is the principal amount on which interest is calculated and which is normally repaid at maturity. Coupon rate is the stated interest rate on the face value. A bond with a face value of ₹1,000 and a coupon of 7.5 percent pays Rs 75 per year. Maturity date is the date on which the principal is repaid.
PB Money lets investors compare bonds by yield, credit rating and investment amount. Yield shows actual return based on price paid. Credit rating shows assessed repayment strength. Investment amount shows the minimum ticket size for that bond.
People invest in bonds for regular income and diversification. Interest from most bonds is paid on fixed dates and does not move with stock prices. This makes bonds useful for balancing equity risk, though bond prices can still fall if market interest rates rise and issuers can delay or default on payments.
Corporate Bonds and Government Bonds for Retail Investors
Online bond platforms in India mainly offer two broad groups of products. These are corporate bonds and government bonds. Both pay fixed income but they differ in issuer, risk and return.
Corporate bonds in India are debt securities issued by companies to raise funds for business needs. This group includes public sector undertaking bonds, bank bonds, non convertible debentures and commercial paper with longer maturity. Corporate bonds usually offer higher interest than government securities of similar maturity. The extra return compensates for credit risk, which is the risk that the company may fail to pay on time. In 2026, yields on highly rated corporate bonds were typically in the range of 7 to 8.5 percent per year, while lower rated papers offered more with higher risk.
Government bonds in India include dated Government Securities (G-Secs), State Development Loans (SDLs), Treasury Bills and listed Sovereign Gold Bonds. The Reserve Bank of India issues these securities on behalf of governments to fund public spending and manage borrowing. They carry sovereign backing and are treated as the safest rupee instruments. Their yields are therefore lower. The 10 year G-Sec yield was near 6.95 percent in early September 2026. State loans usually pay slightly more than central government bonds.
The table below summarises the difference for a new investor.
| Feature | Corporate Bonds | Government Bonds |
|---|---|---|
| Issuer | Companies, banks, NBFCs | Central or state government |
| Backing | Company balance sheet or assets | Sovereign guarantee |
| Typical return | Higher, often 7 to 11 percent | Lower, often 5 to 7.5 percent |
| Main risk | Default and downgrade by issuer | Mainly interest rate movement |
| Liquidity | Moderate, listed on NSE and BSE | High for popular G-Secs |
Retail participation in corporate bonds has grown but remains small compared with fixed deposits. SEBI data and industry estimates place annual corporate bond issuance near ₹9.9 lakh crore in FY2024 to 25, driven largely by institutions. Platforms like PB Money aim to bring part of this market to individuals with smaller ticket sizes and clearer disclosures.
Bond Yield, Ratings and Safety: What Investors Should Check
Bond yield in India is the effective annual return based on the price actually paid for the bond. Coupon is fixed on face value, but yield changes with market price. When price falls, yield rises. When price rises, yield falls.
A simple example makes this clear. A bond with face value ₹1,000 and coupon 6 percent pays ₹60 per year. If an investor buys it in the market for ₹900, the current yield is 6.67 percent because the same ₹60 is earned on a lower investment. Yield to Maturity (YTM) goes one step further. It shows total annualised return if the bond is held till maturity, including all coupons plus any gain or loss between purchase price and redemption value.
Credit rating measures the chance of timely repayment. Agencies such as CRISIL, ICRA, CARE Ratings and India Ratings assign grades from AAA to D. AAA signals the strongest repayment capacity. AA and A signal high but lower safety. BBB and below signal higher risk. Rating outlooks such as stable, positive or negative flag possible future changes.
Is a bond safe to invest in. The answer depends on the issuer and the holding plan. Government bonds carry very low default risk. Corporate bonds carry credit risk, interest rate risk and liquidity risk. Investors face possible default by the issuer, a fall in resale price if rates rise, and difficulty in finding buyers for thinly traded papers. Non resident Indians can invest in many Indian bonds through approved routes, subject to Foreign Exchange Management Act (FEMA) limits and scheme conditions. SEBI requires OBPPs to show rating, yield, maturity, issuer documents and risk factors before purchase.
Bonds Compared With Fixed Deposits and Debentures
New investors often compare bonds with bank fixed deposits and ask how bonds differ from debentures. The three products serve different needs.
Bonds vs FD is a common comparison in India. Fixed deposits offer assured interest from a bank and deposit insurance up to ₹5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC). Corporate bonds usually offer higher yields than similar tenure deposits, often 0.5 to 2 percentage points more, but they have no deposit insurance and carry issuer risk. Listed bonds can be sold on the exchange before maturity, while deposits face premature withdrawal penalties.
Bonds vs debentures causes confusion because the words overlap. In India, government issuances are generally called bonds, while company issuances are often called debentures. A debenture is a type of corporate bond. Non Convertible Debentures (NCDs) are the most common form sold to retail investors. They pay interest and principal and cannot be converted into shares. All debentures offered on an OBPP must be listed debt securities or debt proposed to be listed through a public issue. Unlisted private placements cannot be sold on these platforms.
Why SEBI Created the OBPP Framework and What Rules Apply
SEBI introduced the OBPP framework through a circular on 14 November 2022 under Regulation 51A of the SEBI (Issue and Listing of Non Convertible Securities) Regulations, 2021. The goal was to bring order to fast growing bond apps, improve disclosures and protect retail buyers. The framework was clarified in June 2023 and consolidated in the NCS Master Circular of 15 October 2025.
Under the rules, an OBPP must route orders through the Request for Quote (RFQ) platform of the stock exchange and settle through the clearing corporation. Money and securities move through the regulated system, not through the private account of the platform. The platform must issue an electronic order receipt, share a deal sheet after execution, send alerts by SMS or email, and handle complaints through SCORES, the SEBI complaints redress system.
SEBI updated the framework on 14 August 2026 to ease business and widen choice. OBPPs can now also offer products regulated by the International Financial Services Centres Authority (IFSCA) in GIFT IFSC and bonds issued under Section 54EC of the Income Tax Act for capital gains tax saving. IFSCA products must follow FEMA rules and Liberalised Remittance Scheme limits and must be clearly labelled as international instruments. Tax saving bonds must carry disclosures on lock in, limits and issuer led grievance redress. The compliance officer must now meet the NISM Series IIIA certification standard for stockbrokers.
Exchanges monitor OBPP activity and report gaps to SEBI. Platforms that operate without registration face action. In November 2025, SEBI warned investors against fintechs and brokers offering bond platforms without mandatory OBPP registration.
Key Takeaways
- PB Money received a SEBI OBPP licence, announced on 27 October 2026, to run an online bond platform in India.
- PB Money is operated by PB Marketing and Consulting Private Limited, with SEBI registration INZ000333532 and NSE member code 90494.
- Investors discover bonds on Paisabazaar, which reports over 58 million users across 850 cities and towns, and complete transactions on PB Money.
- The OBPP framework started with the SEBI circular of 14 November 2022 and only permits listed debt or debt proposed to be listed through a public issue.
- SEBI, set up on 12 April 1988 and made statutory on 30 January 1992 under the SEBI Act, 1992, is headquartered in Mumbai.
