First, Are You Subscribing or Buying?

The terms are often used interchangeably on digital platforms, but they can describe different transactions.

The exact order, payment, allotment and settlement process depends on the route used. Before authorising payment, review the transaction summary displayed by the platform.

The Participants Involved

A listed bond transaction may involve several regulated or market-infrastructure entities.

Not every transaction involves each entity in the same way.

Step 1: Review the Order Summary

Before clicking the final payment or confirmation button, check the complete order details. These may include:

• Issuer name
• Bond description
• ISIN
• Credit rating
• Quantity
• Face value
• Market or issue price
• Accrued interest, where applicable
• Total amount payable
• Coupon rate
• Yield to Maturity
• Maturity date
• Settlement date
• Security status
• Call or put provisions

Why the ISIN Matters

Every eligible security is identified by an International Securities Identification Number, or ISIN.

The ISIN helps distinguish one bond from another. The same issuer may have several bonds with different coupons, maturity dates, security structures, ratings, payment frequencies and seniority levels.

Step 2: Authorise Payment

The payment method depends on the type of transaction and the applicable market process.

For an eligible exchange or RFQ-based purchase, payment and settlement may be processed through the designated market-infrastructure mechanism. For a primary issue, funds may be blocked or collected through the payment route described in the offer and application documents.

Before Authorising Payment

Check:

• The beneficiary or payment destination displayed
• The total amount payable
• Whether accrued interest is included
• The payment deadline
• The applicable refund or fund-unblocking terms
• Whether payment must come from your registered bank account

Step 3: Order Placement and Validation

Once payment is authorised, the order is submitted through the applicable transaction route. Depending on the transaction, the system may validate:

• Investor details
• PAN and KYC status
• Demat-account information
• Registered bank details
• Available bond quantity
• Applicable price or quote
• Payment confirmation
• Investor eligibility

An order being submitted does not always mean it has been executed or allotted. Check whether the status displayed is:

• Payment pending
• Order placed
• Awaiting confirmation
• Executed
• Allotted
• Settled
• Rejected
• Cancelled

If the order fails, the refund or unblocking timeline will depend on the payment method, market mechanism and reason for failure. Do not assume that every failed order will be refunded within a fixed 24-hour period.

Step 4A: What Happens in a Primary Issue?

In a primary-market subscription, you are applying for bonds being offered by the issuer. The general sequence may include:

1. Submission of the application
2. Payment or blocking of funds
3. Closure of the issue or application window
4. Validation of eligible applications
5. Basis of allotment, where applicable
6. Allotment by the issuer
7. Credit of allotted bonds to the Demat account
8. Refund or release of excess or unsuccessful application funds

The issuer and its appointed intermediaries—including the registrar, where applicable—support the allotment and record-maintenance process.

The number of bonds allotted may be lower than the number requested if the application is not fully accepted or the issue is oversubscribed. Refer to the offer document for the applicable allotment, listing and refund timelines.

Step 4B: What Happens in a Secondary-Market Purchase?

In a secondary-market purchase, the bond already exists and is being transferred from a seller to the buyer.

The transaction may be executed through an exchange or Request for Quote mechanism, depending on the platform and security. After execution:

• The transaction moves to clearing and settlement
• Funds are settled through the applicable mechanism
• Bond units are transferred from the seller’s Demat account
• The units are credited to the buyer’s Demat account

Step 5: Clearing and Settlement

Clearing determines the obligations of the buyer and seller. Settlement completes the exchange of funds and securities.

For many exchange debt-segment transactions, settlement may occur on a rolling T+1 basis:

• T: Trade date
• T+1: Next applicable settlement day

However, the exact timeline can vary according to the transaction route, exchange or platform, security, payment method, trading calendar, bank or market holiday, and failed or delayed obligations.

Step 6: Demat Credit

After successful settlement or allotment, the bond units are credited to the Demat account linked to your transaction.

Depending on your communication settings, you may receive confirmation from:

• Equirize
• Your broker
• Your Depository Participant
• NSDL or CDSL
• The relevant market-infrastructure entity

What to Verify After Settlement

• Issuer or security name
• ISIN
• Quantity credited
• Settlement date
• Demat account
• Transaction price
• Total amount paid

You can verify the holding through your Depository Participant’s statement or the facility provided by NSDL or CDSL.

If the units do not appear after the stated settlement timeline, contact Equirize or your Depository Participant through an official support channel.

Step 7: Contract Note and Transaction Records

Where applicable, retain the documents generated for the transaction. These may include:

• Order confirmation
• Payment receipt
• Contract note
• Allotment advice
• Depository confirmation
• Account statement
• Offer document
• Term sheet
• Credit-rating rationale

These records can help you verify the transaction, calculate taxes and raise a service or grievance request if required.

Step 8: Coupon Payments

After the bond is credited, coupon payments are governed by the bond’s terms. Depending on the instrument, interest may be scheduled:

• Monthly
• Quarterly
• Half-yearly
• Annually
• At maturity

The issuer or its appointed agents generally use depository records as of the applicable record date to identify eligible holders. The scheduled payment is then processed to the bank account registered through the relevant records.

Important Checks

Confirm that:

• Your bank details are current
• Your Demat account is active
• Your name and PAN details are consistent
• You understand the record date
• You know the scheduled coupon dates

Step 9: What Happens at Maturity?

At maturity, the issuer is required to repay the principal according to the bond’s terms. The process generally involves:

1. Identification of eligible holders using depository records
2. Processing of principal and any final interest payment
3. Credit of the applicable amount to the registered bank account
4. Extinguishment or debit of the matured bond units from the Demat account

The actual payment remains dependent on the issuer fulfilling its obligations. If the issuer delays or defaults on payment, the bond’s default provisions, debenture-trustee process and applicable legal remedies may become relevant.

What If the Equirize Platform Stops Operating?

Your Demat holdings are not the same as your account interface on an online bond platform.

Once successfully credited, bond units are generally reflected in the investor’s Demat account maintained through the depository system. The issuer’s coupon and principal obligations arise from the bond terms, not from the continued operation of the interface through which the investment was originally purchased.

However, this does not mean that a platform shutdown would have no effect at all. It could affect:

• Access to the platform’s dashboard
• Customer support
• Transaction history available through the platform
• Ability to initiate a sale through the same interface
• Platform-provided reminders or tracking features

Investors should retain their records and know how to access holdings through their Depository Participant, NSDL or CDSL.

They should also keep details of:

• The issuer
• ISIN
• Debenture trustee
• Depository Participant
• Stock exchange
• Grievance-redressal channels

A platform ceasing operations does not remove issuer credit risk or guarantee that all future payments will be made.

Platform Risk and Issuer Risk Are Different

It is useful to separate three different risks:

A regulated transaction structure can reduce certain operational concerns, but it cannot eliminate investment risk.

Before You Subscribe: Final Checklist

Confirm that you have reviewed:

• Issuer name and ISIN
• Credit rating and rating rationale
• Coupon and Yield to Maturity
• Total amount payable
• Accrued interest, if applicable
• Maturity date
• Settlement date
• Security status
• Liquidity and early-exit risks
• Call or put options
• Offer document and term sheet
• Official payment route
• Demat and bank details

Do not proceed solely because the payment journey appears simple. A convenient transaction process does not make the underlying bond low-risk or suitable for every investor.