Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»unlisted bonds: Unlisted bonds likely to retain appeal despite tax changes
    Investments

    unlisted bonds: Unlisted bonds likely to retain appeal despite tax changes

    July 29, 20242 Mins Read


    Mumbai: The appeal and lower scrutiny of unlisted bonds may continue to attract investors despite the recent tax changes, according to experts. Credit funds, alternative investment funds, HNIs, and foreign portfolio investors may seek higher yield but will remain interested in unlisted bonds, they said.India’s unlisted bonds market has grown over the last five years, with issuances reaching ₹1.04 lakh crore between January and July 24, 2024, compared with ₹1.87 lakh crore for the entire year 2023, ₹1 lakh crore in 2022, and ₹64,000 crore in 2021, according to Prime Database.

    The government has announced that profits from unlisted bonds and debentures will be taxed as short-term capital gains, regardless of the holding period. This change, effective from July 23, 2024, classifies these instruments as short-term capital assets when transferred, redeemed, or on maturity. However, major high-yield investors are unlikely to be impacted in a big way, according to experts.


    Credit funds typically hold these instruments until maturity to benefit from high yields, which lowers the impact of new tax regulations for those not seeking to realise capital gains through sales. However, some credit fund investors prefer listed instruments for better trading opportunities, higher profit margins, and ease of selling to HNIs, as seen by Goswami Infratech.

    “Some entities may still opt for unlisted bonds or debentures to avoid regulatory scrutiny,” said Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap LLP. “Major high-yield investors and credit funds might prefer unlisted instruments to absorb the entire issue size directly. In contrast, listed issuances require an electronic bidding process, which can hinder securing full allotment.”

    Investors are likely to demand higher yields to compensate for increased capital gains tax, potentially pushing overall yields on unlisted instruments higher.

    Whatsapp Banner

    (You can now subscribe to our ETMarkets WhatsApp channel)



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Million Victories lève 40 millions de dollars pour accélérer son expansion mondiale

    Investments

    Million Victories lève 34 millions d’euros pour accélérer à l’international

    Investments

    P3.38 Trillion in SIPP-Approved Investments

    Investments

    Global Investments rachète 300 000 actions sur le marché

    Investments

    HumanCo Investments presse Grove Collaborative d’envisager des options stratégiques pour doper la valeur actionnariale

    Investments

    Les obligations catastrophes battent de nouveaux records d’émissions en 2025

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Stock Market

    Invest $7,000 in This Dividend Stock for $357.86 in Passive Income

    Cryptocurrency

    How To Identify And Avoid Them

    Investments

    Taiba Investments enregistre une hausse de son bénéfice net et de son chiffre d’affaires pour l’exercice 24 -Le 19 mars 2025 à 06:52

    Editors Picks

    Invest in Courageous, Progressive Journalism

    August 25, 2024

    ROYC Acts as the Structuring and Financial Technology Partner for Riverside for European Wealth Access Fund

    May 15, 2025

    what retailers need to know about consumer preferences

    August 14, 2024

    Stables launches stablecoin virtual card in Europe

    July 22, 2024
    What's Hot

    Tata Steel, SAIL, Hindalco, Vedanta share prices declined 5-7%: Metal index down 5%. Here’s why

    August 5, 2024

    Top 3 KRX Dividend Stocks To Consider In October 2024

    October 30, 2024

    Rick Rule – Gold As A Reserve, A Token, And As Money

    March 27, 2025
    Our Picks

    Australian commodities market sees wild ride in 2024

    August 20, 2024

    Money20/20 lanciert The Money Awards, die neuen globalen FinTech-Awards, und stellt renommierte Juryvorsitzende vor

    April 25, 2025

    Stepping Up For The Unbanked

    October 14, 2024
    Weekly Top

    New Cryptocurrency Releases, Listings, & Presales Today – JuChain, Ceylon, Zentium Tech

    July 9, 2025

    Cryptocurrency Today: Why BAY Miner Is Redefining the Future of Digital Mining

    July 9, 2025

    Real Madrid: le PSG offre une leçon de football au Real et se qualifie pour la finale, le résumé

    July 9, 2025
    Editor's Pick

    Qonto se laisse séduire par le cloud de S3NS

    April 1, 2025

    Metal, rap, balèti… à Aix-en-Provence, tous les stylés musicaux réunis pour la Fête de la musique

    June 22, 2025

    Gold plunges Rs 1,800 to Rs 95,050/10 gm amid weak global demand

    May 15, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.