New Delhi, July 23 -- On 18 July, CareEdge Ratings downgraded Rs.150 crore worth of TruCap Finance bonds to 'D', or default, along with Rs.750 crore of long-term bank facilities. The ratings agency cited the company's failure to pay interest and principal on its non-convertible debentures (NCDs) due on 16 July.

The development has left a trail of retail investors in distress, as these bonds were widely distributed via online bond platform providers (OBPPs) such as Golden Pi, Grip Invest, Alitifi (by Northern Arc), and BondsIndia.

These NCDs were first issued in January 2024 via Northern Arc, with subsequent tranches distributed through other platforms. Originally rated BBB and offering coupon rates of 13-13.5%, the bonds were sold in ti...