Understanding Safety Information & Bond Transparency on BondScanner

Introduction

Transparency is one of the most important aspects of fixed-income investing.

Bonds differ widely in terms of security, issuer strength, coupon structure, maturity, and optionality. Clear and accessible information helps investors understand these characteristics before making decisions.

BondScanner is designed to present safety-related information and disclosures in a structured, neutral, and compliant manner.

This article explains how BondScanner displays safety indicators, security type, risk data, and issuer information while adhering to the SEBI Online Bond Platform Provider (OBPP) framework.

Why Safety & Transparency Matter in Bond Investing

Bond markets involve a variety of instruments, each with different levels of:

• credit risk

• interest-rate risk

• liquidity risk

• structural risk

• issuer-related risk

Understanding these factors requires access to transparent information.

Digital platforms help simplify this by making issuer data, maturity timelines, ratings, and disclosures easily available.

What BondScanner Aims to Provide

BondScanner aims to deliver:

• structured bond discovery

• neutral presentation of features

• clear visibility of security type

• access to offer documents

• transparent yield and price information (when available)

• credit-rating summaries

• call/put features

• maturity schedules

• issuer data and relevant disclosures

These elements help investors understand a bond’s characteristics based on publicly available information and regulatory filings.

Understanding “Safety Information” on BondScanner

BondScanner does not label any bond as “safe” or “unsafe.”

Instead, it displays factors that help users assess the characteristics of each instrument.

Safety-related information includes:

• security type (secured / unsecured / subordinated)

• seniority ranking

• credit-rating data

• issuer category (PSU, corporate, government security)

• maturity and tenor

• structural features such as callability or perpetuity

• listing status

• document disclosures

This framework keeps the information neutral and fact-based.

How Security Type Is Displayed

Security category plays a major role in understanding repayment structure.

BondScanner categorises security as:

1. Secured Bonds

Backed by specific collateral or charge on assets (as disclosed).

2. Unsecured Bonds

Backed by issuer credit without specific collateral.

3. Subordinated / Tier-2 Instruments

Lower ranking in repayment hierarchy.

4. Perpetual & AT1 Instruments

Special regulatory classification with distinct risk characteristics.

Security type is displayed prominently so users can interpret repayment order and structural characteristics.

Credit Ratings & What They Represent

BondScanner displays credit ratings from recognised rating agencies.

Key points:

• Ratings indicate the rating agency’s assessment of creditworthiness.

• Ratings are not investment advice.

• Ratings may change based on issuer performance.

• AAA to D scales vary by agency but follow similar frameworks.

BondScanner shows:

• current rating

• rating agency

• rating date (when available)

This helps users interpret risk categories more clearly.

Risk Disclosures on BondScanner

Risk disclosures are essential for compliant communication.

BondScanner displays:

• SEBI-mandated disclaimers

• risk-related notes for each instrument type

• caution for perpetual and subordinated instruments

• issuer-level risk disclosures (as available in documents)

These disclosures remind users that all bonds carry risk and must be evaluated using official filings.

Pricing, Yield & Market Data Transparency

Where available, BondScanner presents:

• price indications

• yield-to-maturity (YTM)

• yield-to-call (YTC)

• bid–ask ranges

• traded volumes

• historical ranges (if accessible)

These data points:

• reflect market activity

• help users understand liquidity

• show how pricing aligns with yields

All yield information is displayed neutrally and is not forward-looking.

Document Access: Offer Documents & Filings

Offer documents contain the most detailed information about a bond.

BondScanner provides direct access to:

• prospectuses

• term sheets

• rating presentations

• financial disclosures

• regulatory filings

Users can view:

• covenants

• risk factors

• security structure

• cash-flow details

• call/put terms

• issuer financials (if disclosed)

This ensures full transparency for exploring bond features.

Issuer Information & Financial Context

BondScanner shows issuer-level information, including:

• name of issuer

• issuer category (corporate, PSU, government entity)

• sector

• rating

• past issuance activity (when available)

Issuer context helps investors understand:

• operating sector

• ownership structure

• financial strength signals

• historical borrowing patterns

Issuer information supports informed evaluation without providing recommendations.

Bond Structure Transparency: Calls, Puts & Tenor

BondScanner clearly highlights structural features:

1. Call Options

Issuer may redeem early at specific dates.

2. Put Options

Investors may have the right to exit early.

3. Step-Up Coupons

Coupon increases after a certain date.

4. Perpetual or Long-Term Tenors

May influence interest-rate sensitivity.

5. Payment Frequency

Monthly, quarterly, semi-annual, or annual.

Understanding structure is crucial for interpreting maturity and repayment timelines.

Safety Indicators for Securitised & Structured Instruments

For securitised products such as ABS, MBS, PTCs, and structured bonds, BondScanner provides:

• underlying asset category (as disclosed)

• issuer/sponsor information

• credit enhancement features

• subordination levels

• rating details

• cash-flow structure summary

Structured instruments require careful review of documents; BondScanner enhances visibility while remaining neutral.

Retail-Focused Transparency Enhancements

BondScanner prioritises retail-friendly transparency through:

• intuitive interface

• simple filters (rating, issuer type, maturity, coupon)

• structured data presentation

• explanation of key terms

• easy access to disclosures

• call/put and maturity timelines displayed clearly

Clear information helps retail users explore the bond market responsibly.

Common Misinterpretations to Avoid

Users may avoid the following misunderstandings:

1. High ratings ≠ risk-free

Ratings reflect agency assessment, not guarantees.

2. Secured bonds still carry risk

Collateral may not fully eliminate risk.

3. Yield ≠ assured return

Yields reflect market pricing at that moment.

4. Call/put features may impact timing

Early redemption alters cash flows.

5. Listed status ≠ high liquidity

Market depth varies widely.

Understanding these helps improve bond awareness.

How BondScanner Fits Within the OBPP Framework

BondScanner follows the SEBI OBPP regulatory framework:

• operates under a licensed intermediary

• routes transactions through exchanges

• follows advertising and communication guidelines

• ensures transparency and risk disclosures

• avoids promissory or misleading statements

• offers access to official documents and regulated data sources

This ensures fully compliant information delivery for investors.

Conclusion

Safety information and transparency are essential pillars of fixed-income investing. BondScanner enhances clarity by providing structured access to issuer details, credit ratings, security types, yield data, maturity timelines, and offer documents—helping investors explore bonds confidently and responsibly.

The platform’s transparency-first approach aligns with regulatory expectations and enables retail investors to understand fixed-income instruments more easily.

Disclaimer

This blog is intended solely for educational and informational purposes. The bonds and securities mentioned herein are illustrative examples and should not be construed as investment advice or personal recommendations. BondScanner, as a SEBI-registered Online Bond Platform Provider (OBPP), does not provide personalized investment advice through this content.

Readers are advised to independently evaluate investment options and seek professional guidance before making financial decisions. Investments in bonds and other securities are subject to market risks, including the possible loss of principal. Please read all offer documents and risk disclosures carefully before investing.