Online Bond Investing: BSE, NSE Sound Cautionary Note
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have issued a joint advisory to investors. They urge caution when purchasing bonds via online platforms.
The advisory highlights the need for thorough due diligence before investing. This includes careful scrutiny of the issuer’s creditworthiness and the bond’s terms and conditions.
Investors are also advised to be wary of unusually high returns. Such offers may indicate higher-than-average risk. Independent verification of information is crucial.
The exchanges emphasize the importance of understanding the risks associated with bond investments. This includes interest rate risk and credit risk.
This joint advisory comes amidst a surge in online bond trading. The BSE and NSE aim to protect investors from potential scams and losses. The need for financial literacy and careful investment decisions has never been more critical in today’s dynamic market.