Non-Convertible Debentures (NCDs)
Secure long-term fixed income with listed, tradable debentures that provide consistent returns and liquidity.
What are Non-Convertible Debentures (NCDs)?
Non-Convertible Debentures (NCDs) are fixed-income financial instruments issued by companies to raise long-term funds. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company. Instead, they offer investors a fixed rate of interest, making them a reliable investment option for those seeking predictable returns and portfolio diversification.
Key Features of NCDs
Explore NCDs with us today and enjoy the benefits of predictable returns, safety, and professional guidance.
“Explore NCDs with us today and enjoy the benefits of predictable returns, safety, and professional guidance.”
Types of NCDs
Secured NCDs – Backed by the issuer’s assets, offering higher safety.
Unsecured NCDs – Higher risk compared to secured NCDs, but often with higher interest rates.
Short-Term NCDs – Tenure less than 5 years, suitable for near-term investment goals.
Long-Term NCDs – Tenure ranging from 5 to 10 years, ideal for long-term investors.
Benefits of Investing in NCDs
- Attractive interest rates compared to bank fixed deposits.
- Regular income stream through periodic interest payments.
- Liquidity if listed on stock exchanges.
- Diversification of portfolio with a fixed-income product.
- Option to choose cumulative or non-cumulative interest payout.
Risks to Consider
- Credit Risk – Possibility of default by the issuing company.
- Liquidity Risk – Some NCDs may have lower trading volumes in the secondary market.
- Interest Rate Risk – Value of NCDs may fluctuate if interest rates in the economy change.
Who Should Invest in NCDs?
- Investors seeking stable and predictable income.
- Conservative investors looking for fixed returns above bank deposits.
- Those aiming to diversify portfolios with debt instruments.
- Retired individuals or risk-averse investors preferring regular payouts.
How We Help You with NCDs
- Identifying high-quality NCD issues with strong credit ratings.
- Diversifying your portfolio with suitable secured/unsecured NCDs.
- Structuring investments based on your financial goals (monthly income, long-term wealth creation, etc.).
- Offering guidance on tax implications and secondary market opportunities.