Where To Buy Convertible Bonds in India? When companies or government institutions that require funding for their business or public projects want to operate their business transparently on a large scale, they require public support and involvement. Hence, the concept of bonds was born in India. Since the country opened its borders for foreign investments, the government bond market in the economy is close to the $1 trillion mark. According to Schroders, $170 billion worth of convertible securities will be launched in 2021. They expect that the number would reach a record volume of approximately $165 billion by 2022. The recent insights showed that the convertible bonds touched the $700 billion mark globally in 2020. The inclusion of convertible securities in the growing economy helps private and public institutions fill the funding gaps.
What is a Convertible Bond? Also known as corporate bonds, these convertible securities are held by the investors with an option to convert them into equity stocks at any point in time. Simply put, you have the right or obligation to convert bonds into equities anytime before the bond maturity expires. Upon conversion, you’ll receive a pre-fixed number of equity shares. There are various types of convertibles in India, namely, vanilla convertible bonds, mandatory convertibles, exchangeable bonds, and reverse convertibles.