<ul data-eligibleForWebStory="false"><li>The National Stock Exchange and BSE issued a public advisory warning investors about the risks associated with online bond platform providers and emphasized the importance of understanding bond characteristics, risks, and costs.</li><li>Investors are urged to check SEBI registration, review credit ratings, understand issuer repayment history, assess liquidity, be aware of settlement processes and tax implications before investing through online platforms.</li><li>Exchanges recommend using a rating-based risk scale akin to a mutual fund risk-o-meter to evaluate different bond risks. Concepts like Yield to Maturity and coupon rate are highlighted to help investors understand returns and interest rate impacts.</li><li>The advisory underlines the inverse relationship between bond prices and yields, emphasizing the importance of understanding interest rate risk and associated costs to accurately assess final returns.</li></ul>

BSE, NSE Warn Of Online-Bond-Platform Risks; Urge Investors To Do Due Diligence Before Investing

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