Non-Convertible Debentures are a debt instrument with a fixed tenure and people who invest in these receive regular interest at a certain rate.
Companies issue NCDs publicly, these are called debt instruments to raise their capital. The NCDs can be in two ways, either secured or unsecured. Secured NCDs are backed by assets of the companies raising capital. An unsecured NCD does not have a asset backup.
In a secured NCD incase of default the invested money has to be settled by sale of assets. For Both secured or unsecured NCD the issuing company has to obtain a credit rating.
You can buy NCD anytime from secondary market thru Edelweiss, Prudent, Motilal Oswal etc
better liquidity than Fixed Deposit
Reurns from 6% to 11% based on tenure & rating
You can invest based on credit rating like AAA, AA, A, A- etc As credit rating goes down, interest rate goes up from 6% onwards upto 11 and more
1) Listed on exchanges 2) Issued by big listed financial services company 3) secured and backed by assets of issuing company 4) Higher interest on your investment 5) Get interest on Monthly, Annual & cumulative 6) Use it as collateral