Of course, you have legal recourse, but even before that every bond and debenture has to go through a detailed credit rating process. Rating agencies like CRISIL, ICRA, CARE and Fitch will go through the repayment capacity of the company issuing bonds and will give a view on the ability of the company to repay interest and principal on time. Based on its analysis and the recommendations of the Ratings Committed, the rating agency will assign a rating to the bond. Remember, ratings are issued for specific instrument and not for companies. For example, “AAA” rating is the highest rating and shows high safety in the timely payment of interest and the timely repayment of principal. These are considered to be the safest of bonds. As you go down the rating curve towards “AA”, “A”, “B” etc you gradually move towards more risky bonds. Such bonds will give you higher rates of return but will also come with higher levels of risk. You need to be conscious of that. Looking at the ratings of the bond gives you an idea as to how safe and assured the instrument is.