When an investor chooses against holding the bond till maturity, they sell it to another investor in the market who might be interested in it. This is known as the secondary bond market. You need a bank account for transactions, and a DEMAT account to get the bonds deposited.

Municipal bonds are an example of secondary bond market instruments that are issued on behalf of municipal corporations or bodies associated with them across the country aimed at socio-economic development. Municipal bonds can be purchased with a maturity period that amounts to three years.

Another type of bonds issues in the secondary bond market are retail bonds.

A retail bond offering allows a company to raise additional capital by borrowing at a fixed rate from an investor for a specific length of time. Companies typically issue retail bonds to expand their business, pay off debt, or fund a specific project, as with any capital raising. Retail bonds are typically listed and can thus be bought and sold during regular market hours, allowing investors more flexibility. Shriram Transport, Muthoot Finance Ltd are some types of retail bonds.