{"id":7647,"date":"2024-05-10T16:28:08","date_gmt":"2024-05-10T16:28:08","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=7647"},"modified":"2026-04-15T09:07:23","modified_gmt":"2026-04-15T09:07:23","slug":"retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/","title":{"rendered":"Retail Investors Can Now Engage More in Corporate Bonds With Lower Face Values"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Sometimes investing can seem too pricey, even though there are returns attached to it. Most of us hesitate to invest with huge capital and also wonder if it could be done with less capital.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although investors have the choice of picking a stock with a lower price or waiting until a dip to purchase a costlier stock at a discounted price, in the fixed-income market, corporate bonds will now become more accessible as their face value will be reduced.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bonds are without a doubt a safer investment option because they are associated with lower risk compared to stocks and greater returns compared to FDs. To help retail investors participate actively in the bond market, <a href=\"https:\/\/www.sebi.gov.in\/\" target=\"_blank\" rel=\"noopener noreferrer\">SEBI<\/a> has decided to lower the face value of these <strong><a href=\"https:\/\/goldenpi.com\/corporate-bonds\" target=\"_blank\" rel=\"noopener noreferrer\">corporate bonds <\/a><\/strong>making it easier to invest through a <a href=\"https:\/\/goldenpi.com\/bond-ipo-online\" target=\"_blank\" rel=\"noopener\">bond IPO India<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let&#8217;s see how much it has reduced and how it can help a retail investor in this article.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/#Corporate_bonds_face_value_decision\" >Corporate bonds face value decision\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/#The_journey_of_corporate_bonds_in_India\" >The journey of corporate bonds in India<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/#What_is_the_bond_face_value\" >What is the bond face value?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/#How_to_analyze_the_credit_worthiness_of_corporate_bonds\" >How to analyze the credit worthiness of corporate bonds?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/#Lets_get_into_it_a_bit_deeper\" >Let\u2019s get into it a bit deeper\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/#What_is_the_difference_between_corporate_and_government_bonds\" >What is the difference between corporate and government bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/#How_are_bonds_taxed\" >How are bonds taxed?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_bonds_face_value_decision\"><\/span><b>Corporate bonds face value decision\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Though the <strong><a href=\"https:\/\/goldenpi.com\/blog\/fixed-income\/bonds-4-basic-things-that-you-must-know\/\" target=\"_blank\" rel=\"noopener noreferrer\">bond market<\/a><\/strong> came much earlier, it was not regulated quite well to see a greater level of participation like in the stock market. It&#8217;s a different discussion as to why stock is more appealing to many for such a huge participation; <a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/5-things-to-consider-when-holding-bonds-to-maturity\/\">bonds<\/a> are now slowly gaining greater traction due to several major changes taking place.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">SEBI: The regulator, to deepen participation and volume, has taken a move to reduce the face value of the bond\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So here\u2019s the crux, in 2022, it was reduced to 1 lakh and now, in 2024, the face value has been reduced to 10,000. That\u2019s a massive reduction, which could allow retail investors to not think much about investing in such an investment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The great interest in the stock market is also primarily due to lower ticket sizes. This act can turn out to be beneficial for corporates to get more funding and also for investors, as it is less costly for them to invest, try out, and understand the benefits of debt instruments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bonds were earlier a <a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/bond-investment-process-for-hni-indian-investors\/\">HNI<\/a> product, now it\u2019s no longer a perspective to look at. It is for everyone, including retailers.<\/span><\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"The_journey_of_corporate_bonds_in_India\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/the-journey-of-corporate-bonds-in-india\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Face_Value\"><b>The journey of corporate bonds in India<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><img decoding=\"async\" class=\"aligncenter wp-image-8669\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/05\/06062824\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values.gif\" alt=\"retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\" width=\"721\" height=\"541\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_bond_face_value\"><\/span><b>What is the bond face value?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you didn\u2019t follow the discussion about reducing face value, here\u2019s what you need to know about the concept of face value in the bond market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both stocks and bonds have a face value attached to them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the stock market, a face value is the price at which the company enters but an investor mostly can\u2019t purchase the stock at a face value as the price in the market rises or falls based on supply and demand and they can purchase at market value and hence this concept is not of much importance in the stock market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the bond market, the face value, also referred to as par value, is the price at which the company issues a bond and is written in the bond certificate as well. But when it comes to the open market, the price of the bond will fluctuate based on the interest rate hike or cut and the company&#8217;s financials.<\/span><\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"How_to_analyze_the_credit_worthiness_of_corporate_bonds\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/how-to-analyse-the-credit-worthiness-of-corporate-bonds\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Face_Value\"><b>How to analyze the credit worthiness of corporate bonds?<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"Lets_get_into_it_a_bit_deeper\"><\/span><strong>Let\u2019s get into it a bit deeper\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Suppose the issuer, a company, wants to raise a bond of about Rs 1 crore at a face value of Rs 10,000. It can raise about 10,000 bonds and the subscription closes with that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So the <a href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/how-indian-investors-can-safeguard-their-investments\/\">investor<\/a> can purchase one bond by paying Rs 10,000, two by paying Rs 20,000, and so on. The price at which you purchase a bond is called the face value, otherwise called the par value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it comes to the market, it can be traded in the secondary market, just like in the stock market. Here, the price of the same bond can rise and fall based on interest rates and company financials. If the interest rate increases and the RBI decides to increase the repo rate, then the price of the bond will decrease. Here, it holds an inverse relationship, unlike the stock market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With an inverse relationship, it only means that when the interest rate rises, the bond price reduces and when the interest rate falls, the bond price increases.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So if you are selling the bond in the secondary market and decide not to keep it till maturity, then you are profitable only if you sell it at a higher price, which means the interest rates must reduce.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That way, assuming you are now selling the bond in the secondary market at Rs 10,100, you are profitable by Rs 100. Basically, if the price is more than the face value, it is called above par and if it is below the face value, it is called below par.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you hold it till maturity, then regardless of what you are selling to the issuer at face value, you are receiving a fixed interest rate from the issuer for this.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, when SEBI reduces the face value, what does it mean? If the same issue mentioned above has a face value of\u00a0 Rs 1,00,000 and Rs 10,00,000, what would happen?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Assuming you want to buy 2 units of bonds, then you must invest between Rs 2,00,000 and Rs 20,00,000 lakhs for such a face value. This can seem costlier for a retail investor to consider investing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With SEBI\u2019s new regulation, it has now become affordable for retail investors to buy those 2 units of bonds for just 20,000! It\u2019s a great deal.<\/span><\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_corporate_and_government_bonds\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/difference-between-corporate-and-governments-bonds\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Face_Value\"><b>What is the difference between corporate and government bonds?<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As an investor, what do you think of this move by SEBI? Here\u2019s what the GoldenPi CEO <\/span><a href=\"https:\/\/economictimes.indiatimes.com\/markets\/bonds\/lower-face-value-to-enable-more-retail-investors-bond-with-the-best-corporates\/articleshow\/109993678.cms?trk=public_post_main-feed-card-text\"><span style=\"font-weight: 400;\">thinks<\/span><\/a><span style=\"font-weight: 400;\">. Want to invest in corporate bonds and other fixed income investments? Find it out at <\/span><strong><a href=\"https:\/\/goldenpi.com\/corporate-bonds\">GoldenPi<\/a><\/strong><span style=\"font-weight: 400;\"> &#8211; a trusted fixed income investment platform.<\/span><\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"How_are_bonds_taxed\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/how-are-bonds-taxed\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Face_Value\"><b>How are bonds taxed?<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Sometimes investing can seem too pricey, even though there are returns attached to it. Most of us hesitate to invest with huge&hellip;<\/p>\n","protected":false},"author":4,"featured_media":7648,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[24,22],"tags":[],"class_list":["post-7647","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bond-market","category-essentials"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Retail Investors Can Now Engage More in Corporate Bonds With Lower Face Values - GoldenPi | Blogs<\/title>\n<meta name=\"description\" content=\"Retail Investors Can Now Engage More in Corporate Bonds With Lower Face Values\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Retail Investors Can Now Engage More in Corporate Bonds With Lower Face Values - GoldenPi | Blogs\" \/>\n<meta property=\"og:description\" content=\"Retail Investors Can Now Engage More in Corporate Bonds With Lower Face Values\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldenpi.com\/blog\/essentials\/retail-investors-can-now-engage-more-in-corporate-bonds-with-lower-face-values\/\" \/>\n<meta property=\"og:site_name\" content=\"GoldenPi | Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldenpitech\" \/>\n<meta property=\"article:author\" content=\"goldenpitech\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-10T16:28:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-15T09:07:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/05\/10162757\/Blog-Banner-1160-x-550-px-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1160\" \/>\n\t<meta property=\"og:image:height\" content=\"550\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Abhijit Roy, CEO &amp; 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