Procedure to make an investment in Corporate Bonds

First:- Select the Bond/s that you want to invest in

Smest offers a rich portfolio of bonds such as Perpetual Bonds, Tax-Free Bonds and Government-Backed Bonds. Our team of dealers has been working in the debt market for over a decade and can offer you competitive pricing. We can also offer bonds in a smaller quantum of investment of just INR 2 lacs and multiples to lots of INR 5 crores and multiples.

When investing in a corporate bond, there are three basic considerations.

  • The issuer does not default
    We recommend investors buy investment-grade bonds, and there is a large variety within investment-grade, ranging from super-safe AAA to one notch above junk, BBB-. So you need to ask yourself what is the highest amount of credit risk that you are prepared to take?
  • Getting the highest yield
    How long the bond has until maturity will have a major impact on yield. Normally, the longer the bond has until maturity, the higher its yield. It’s important to find the right balance between the risk and the yield. The safer the bond is, the lower the yield and vice versa. You don’t want to be taking an exceptionally high risk, however, sometimes the extra yield compensates for the risk.
  • The bond’s callability before maturity
    You want to avoid buying bonds that are callable at face value within the next couple of months and that are trading at a big premium.

Get in touch with our dealers on our Whatsapp Business Account on +912226048050 to receive the day’s quotes and offers.

Second:- KYC [Know Your Client]

All trades are settled via the Stock Exchanges viz. NSE and BSE only. The following documents will be required to complete a purchase in an individual name. If you are investing from a corporate entity, HUF or Trust, please speak with our representatives for the list of KYC that will be required.

  1. Self Attested Pan Card Copy [Proof of Identity]
  2. Self Attested Aadhar Card Copy [Proof of Address]
  3. Canceled Cheque copy [You need to submit the canceled cheque of the Account* from which you will be making the payment to the exchange on the day of purchasing the bond.]
  4. DMat CML (Client Master List) This is the proof of your DMat Account and will be provided to you by the Depository Participant with whom you hold your DMat Account.

You can email your documents to contact@smest.in or can reach out to our High Networth Individual Desk on WhatsApp on +912226048050.

*Savings Account: You need to add the Stock Exchange as a beneficiary to enable you to make a NetBanking RTGS transaction.
Here are the bank coordinates of the BSE Corporate Bond trading platform which is known as the Indian Clearing Corporation Ltd.

Beneficiary Name: Indian Clearing Corporation Limited

Bank Name: Reserve Bank of India

Branch: Fort, Mumbai

Account Number: 8715962

IFSC Code: ICLL0000001

Please note certain banks take upto 24 hours to activate a beneficiary incase you are thinking of making an online transfer.

We also recommend you to check your NetBanking Daily Transfer Limits as most banks will have this default set at INR Five Lacs.

Once your KYC Documents are processed and you have arrived at the bond you want to invest in and agreed on a purchase price/yield. Our representatives will email you a Deal Confirmation Letter which you have to sign, scan and send back a copy to complete the purchase process.

 

Third:-  On the day of Settlement (Transaction)

  1. Transfer the Settlement Amount mentioned in the Deal Confirmation to the Bank Coordinates of Indian Clearing Corporation Limited. You can choose to make a manual transfer by visiting the bank or online transfer
  2. Smest will transfer the units to the Stock Exchange and by end of the day the exchange will settle the trade and you will receive the Bonds in your DMat account on the same day.

For a seamless, transparent and smooth experience to make an investment in fixed income instruments, call us or Whatsapp our representatives on +912226048050.

 



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