NCDS / Bonds

Non Convertible Debentures (NCDs)

Investors want investment options that manage liquidity and risks while offering substantial returns. Debentures are long-term financial instruments issued by a company for specified tenure with a promise to pay fixed interest to the investor. Debentures are of two types, namely convertible debentures and non-convertible debentures (NCD).Non-convertible debentures (NCD) are those which cannot be converted into shares or equities. NCD interest rates depend on the company issuing the NCD.

NCD investment can be held by individuals, banking companies, primary dealers other corporate bodies registered or incorporated in India and unincorporated bodies.

 

NCD – THE BEST DEBT INVESTMENT OPTION

Better Returns

NCDs offer better risk adjusted returns compared to other debt investment options.

Liquidity

NCDs can be traded in secondary market and hence offer liquidity.

Tenure

The debentures are generally offered in four options: monthly, quarterly, annual and cumulative interest.

No TDS

TDS is not applied on interest earned on NCDs.