The Indian bond market consists of Government Securities, Corporate Bonds, Municipal Bonds, Agency Bonds, Electoral Bonds, and more. However, the corporate bond market is highly illiquid, making it difficult for investors to buy or sell securities.
- Issuance & Distribution: Dominated by private placements to institutions with high minimum investment (₹10 lakhs).
- OTC Trading & Price Discovery: Most trades happen over-the-counter, not on transparent electronic platforms.
- Low Returns & Long Maturity: Bonds offer comparatively low returns over long periods with default risk.
- Lack of Market Making: Absence of active intermediaries providing two-way quotes.
- Retail Investor Disinterest: Barriers to entry discourage small investors, worsening illiquidity.
A SEBI-regulated electronic platform designed to centralize trading, enhance transparency, and democratize access to bonds. The BLP re-architects how bonds are traded in India, creating a dynamic and liquid market ecosystem.
- Bonds revalued dynamically using a Company Performance Index (CPI).
- CPI drives price charts and creates stock-like trading behavior.
- Breaks high-value bonds (₹10 lakhs) into affordable units (₹500–₹1000).
- Enables retail participation through tokenized, fractional bonds.
- Allows P2P trading of fractions in real-time.
- Standardized bond options (calls & puts) for speculation and hedging.
- Boosts trading volume and provides insurance-like protection.
- Ensures safety for retail investors by limiting default exposure on AAA-rated bonds.
- Automated bots provide continuous buy/sell quotes based on yield curves and credit spreads.
- Penalty system for market makers who fail to ensure liquidity.
- Investors can lend bonds to earn 1–2% additional yield annually.
- Bonds yielding less than treasury bonds can include company incentives to attract investors.
- Investor Protection: Features like CPI, options as insurance, and default safeguards protect retail investors.
- Market Development: BLP deepens India’s securities market by adding transparency and liquidity.
- Fair & Transparent Regulation: Audit trails, transparent pricing, and strict accountability for market makers.
- Retail Investors: Affordable access and stock-like experience.
- Traders & Institutions: Transparent, liquid, and hedgable instruments.
- Corporate Issuers: Wider access to diverse pools of capital.
- Buy fractions of a high-value bond like a mutual fund SIP.
- Trade fractions in real-time on open market.
- Hedge positions using options.
- Lend bond holdings for extra yield.
- Not just fractionalizing bonds—BLP integrates dynamic pricing, tokenization, derivatives, and AI-powered liquidity into one unified ecosystem.
- Transforms bonds from static debt to dynamic assets, making them exciting and tradable.
- Liquidity is guaranteed from day one with AI-driven market making.
- A self-sustaining ecosystem that fundamentally reshapes the Indian bond market.
- Drives retail participation and institutional adoption.
- Scales beyond corporate bonds to include municipal and other debt instruments.
- Build Tokenization Engine & basic P2P Exchange.
- Define & back-test CPI algorithm.
- Secure entry into SEBI’s regulatory sandbox.
- Partner with corporates to tokenize bonds.
- Deploy initial AI market makers.
- Launch with limited beta testers.
- Public rollout with retail investor onboarding.
- Introduce bond options chain.
- Activate bond lending hub.
- Expand corporate bond listings.
- Enhance AI-driven market making.
- Include municipal bonds & other instruments.
The current implementation contains the basic wireframe of how the platform should look. Click here to view the current prototype.
The Bond Liquidity Platform (BLP) aims to redefine the Indian bond market by integrating transparency, accessibility, and liquidity. By transforming bonds into dynamic, stock-like, and tradeable assets, BLP can become the backbone of India’s debt market infrastructure.