FYERS provides access to a wide range of bond investments, catering to both retail and institutional investors. Each type of bond has unique features, risks, returns, and use cases. Below is an overview of the main bond categories available on FYERS, along with how they work and where relevant, how they may be used as collateral after pledging.
Corporate bonds are fixed-income securities issued by companies (public or private) to raise funds. When you invest, you lend money to the issuer and receive interest based on the bond terms. Compared with government-backed bonds, corporate bonds can offer higher yields, but their risk depends largely on the issuer’s financial strength and credit rating.
On FYERS, corporate bond applications placed in the primary market follow the IPO/public issue route, while listed debt can be accessed in the secondary market where available. Corporate bonds held in your Demat account may also be eligible for pledging to obtain collateral margin, subject to eligibility and haircut rules.
To understand the step-by-step investment flow, see investing in Government and Corporate Bonds on FYERS in this article. To understand collateral eligibility, see pledging bonds on FYERS in this article.
G-Secs are long-term debt instruments issued by the Reserve Bank of India (RBI) on behalf of the Government of India. They are sovereign-backed instruments, which makes them one of the lowest-credit-risk debt products available to investors.
G-Secs are commonly chosen by investors looking for government-backed fixed-income exposure over longer time horizons. If you hold them in your Demat account, eligible G-Secs may also be pledged on FYERS to generate collateral margin, subject to haircut and margin rules.
To learn how to place bids for G-Secs and manage orders, see investing in Government and Corporate Bonds on FYERS in this article. For charges and auction timelines, see charges and cut-off timings in this article.
T-Bills are short-term securities issued by the Government of India. They do not pay periodic interest. Instead, they are issued at a discount and redeemed at face value on maturity, so your return is the difference between the purchase price and the redemption value.
T-Bills are often preferred by investors who want a short-duration government-backed investment. On FYERS, eligible T-Bills can also be pledged after allotment if they are held in your Demat account. Pledged T-Bills are treated as collateral for margin usage where permitted, subject to applicable haircut rules and segment restrictions.
If you hold a T-Bill till maturity, it is redeemed at face value. FYERS states that primary market investment is free and that holding till maturity does not attract exit charges. If sold before maturity on the exchange, standard brokerage and DP charges apply.
For timelines and charges when investing in T-Bills, see charges and cut-off timings in this article. To understand pledge eligibility and collateral usage, see pledging bonds on FYERS in this article and pledge margin usage in this article.
SDLs are bonds issued by individual state governments to fund infrastructure and development projects. They are similar to G-Secs in structure, but may offer slightly higher yields because they carry state-level credit exposure rather than central sovereign exposure.
SDLs can suit investors who want government-linked debt exposure with potentially better yields than G-Secs. Eligible SDL holdings in your Demat account may also be pledged on FYERS for collateral margin, subject to approval and applicable haircut.
For detailed cut-off timings and charges, see charges and cut-off timings in this article. To understand investment flow, see investing in Government and Corporate Bonds on FYERS in this article.
SGBs are government-issued securities denominated in grams of gold. They give you exposure to gold prices without needing to hold physical gold, and they also provide periodic interest income as per the issue terms.
SGBs are often used by investors who want long-term gold exposure in Demat form instead of holding physical gold. Eligible SGB holdings may also be pledgeable on FYERS, subject to product eligibility and haircut rules.
To know who can invest, see SGB eligibility in this article. To apply for an issue, see applying for Sovereign Gold Bonds in this article. To redeem or sell, see redeeming Sovereign Gold Bonds in this article.
Eligible bonds held in your FYERS Demat account can be pledged to obtain collateral margin for trading, subject to applicable haircut and product eligibility. FYERS states that eligible pledged bonds are treated as cash equivalents where permitted. However, margin usage is limited to the segments allowed under the applicable rules.
To understand which bond holdings are pledgeable and how the margin value is calculated after haircut, see pledging bonds on FYERS in this article and pledge margin usage in this article.
| Scenario | Resolution |
|---|---|
| You want short-term, government-backed investment | T-Bills may be suitable because they are short-duration securities with 91, 182, or 364-day tenures and are redeemed at face value on maturity. |
| You want long-term government-backed fixed-income exposure | G-Secs and SDLs may be considered based on your preferred tenure, yield expectation, and interest-rate outlook. |
| You want higher potential yield than sovereign debt | Corporate bonds may offer better yields, but the added return comes with issuer credit risk. Always review ratings and bond terms before investing. |
| You want exposure to gold without buying physical gold | SGBs can provide gold-linked exposure in Demat form, along with fixed interest as per the issue terms. |
| You want to use bonds for collateral margin | Eligible bond holdings in your Demat account can be pledged on FYERS. The collateral value available depends on the approved security and the haircut applied. |
| You want to use pledged bond collateral for option buying or equity delivery | This is not permitted. Pledge margins cannot be used for option buying or equity delivery trades. |
| You want to hold a T-Bill till expiry | T-Bills are redeemed at face value on maturity. FYERS states that holding till maturity is free of cost. If you need the exact proceeds-credit timeline for customer communication, please confirm the operational settlement timeline internally before publishing it as a fixed SLA. |
| You need to modify or cancel a bond order | Debt Market orders for G-Secs, T-Bills, and SDLs can be modified or cancelled while the status is In Process. Corporate bond applications cannot be directly modified and must be cancelled and reapplied. |
Last updated: 18 Mar 2026