Full formBusiness & Corporate
PXBstands forPublic eXchange Bond
Full Form of PXB
What is PXB?
A Public eXchange Bond (PXB) is a debt instrument issued by state-owned enterprises or public sector undertakings (PSUs) on recognised stock exchanges in India. These bonds are listed and traded similarly to equity shares, providing liquidity to investors while enabling PSUs to raise long-term capital for infrastructure projects, expansion, or working capital needs. PXBs are commonly issued through public offerings or private placements, with terms ranging from 5 to 20 years. They offer fixed or floating interest rates, often with sovereign backing, making them lower-risk investments. In India, PXBs are regulated by the Securities and Exchange Board of India (SEBI) and are popular among institutional investors like mutual funds, insurance companies, and pension funds. Retail investors also participate through demat accounts. The concept gained traction after the government mandated listing of all public sector bonds to improve transparency and market depth. PXBs can be traded on the secondary market, allowing price discovery. They are distinct from corporate bonds due to the implicit government guarantee. In exams like the RBI Grade B or NSE certification, understanding PXBs is relevant for fixed-income markets and public finance segments.
PXB का फुल फॉर्म
सार्वजनिक विनिमय बांड
Example
The Indian Railway Finance Corporation raised ₹5,000 crore through PXB issuance, which was listed on the BSE and NSE with a coupon rate of 7.25%.
PXB — frequently asked questions
What is the full form of PXB?
The full form of PXB is Public eXchange Bond, a debt instrument issued by Indian public sector entities and listed on stock exchanges.
How are PXBs different from regular government bonds in India?
PXBs are issued by PSUs rather than the central government, though they often carry implicit government backing. They are traded on stock exchanges, unlike non‑listed government bonds held in RTGS.
Can retail investors buy PXBs in India?
Yes, retail investors can buy PXBs through their demat accounts on the secondary market or through public issues, subject to minimum lot sizes set by the issuer.