Non-Convertible Debentures

Non-Convertible Debentures (NCDs)

Non-Convertible Debentures (NCDs) are fixed-income instruments issued by companies to raise long-term capital. Here are some key features:

Benefits of Non-Convertible Debentures (NCDs)

• Fixed Income: NCDs offer fixed returns to investors over a specified period.
• Higher Interest Rates: Compared to other fixed-income instruments, NCDs often offer higher interest rates.
• Flexible Tenure: Investors can choose NCDs with varying tenures to suit their investment horizon.
• Secured and Unsecured Options: NCDs may be secured or unsecured based on the issuer's credit rating and collateral.
• Regular Interest Payments: Investors receive periodic interest payments throughout the NCD tenure.

Eligibility Criteria for Investing in NCDs

To invest in Non-Convertible Debentures (NCDs), individuals must meet the following eligibility criteria:

• Age: Individuals must be at least 18 years old.
• Documentation: KYC documents such as PAN Card, Aadhaar Card, and address proof are required.
• Financial Stability: Investors should have the financial capacity to invest in NCDs and bear the associated risks.