What are Non-Convertible Debentures (NCDs)?

NCDs are fixed-income investment instruments issued by companies to raise capital. They cannot be converted into equity shares and usually offer a fixed interest rate.

Who can invest in NCDs?

Both individual and institutional investors—including resident Indians, NRIs (in some cases), HUFs, and trusts—can invest in NCDs, subject to eligibility criteria.

What are the types of NCDs?

NCDs are typically classified as secured or unsecured. Secured NCDs are backed by the company's assets, offering greater safety.

Are NCDs safe to invest in?

The safety depends on the credit rating of the NCD. Higher-rated NCDs (like AAA) are considered safer. However, they still carry credit and liquidity risks.

What is the typical tenure of an NCD?

NCDs come with varying tenures—ranging from 1 year to 10 years or more—and investors can choose based on their investment horizon.

How is the interest paid on NCDs?

Interest can be paid monthly, quarterly, annually, or at maturity depending on the option chosen at the time of investment.

Can NCDs be traded in the secondary market?

Yes, listed NCDs can be traded on stock exchanges like NSE and BSE, offering liquidity before maturity.

What is the tax treatment on NCDs?

Interest earned is taxed as income under 'Income from Other Sources' as per your tax slab. Capital gains (if sold on the exchange) are taxed depending on the holding period.

NCDs Updates

NTPC to raise ₹4,000 crore via NCDs through private placementNTPC to raise ₹4,000 crore via NCDs through private placement

Invest Smart. Earn Steady with NCDs

Non-Convertible Debentures (NCDs) are fixed-income financial instruments issued by companies to raise long-term capital. They carry a fixed interest rate and a specified maturity date. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company.

Lock in Attractive Fixed Returns

Steady Income with Defined Tenure

Diversify with Rated Debt Instruments

Smaller Ticket Size

Invest Smart. Earn Steady with NCDs

Lock in Attractive Fixed Returns

Steady Income with Defined Tenure

Diversify with Rated Debt Instruments

Smaller Ticket Size

Tradeable Instruments Listed on stock exchanges

Consistent Returns - Suitable for long-term planning

Reduced Volatility Less impact from market swings

Grow Your Wealth Securely with NCDs

Non-Convertible Debentures (NCDs) are fixed-income instruments offering stable returns and a set maturity. They can be secured (asset-backed) or unsecured (higher risk, higher potential returns). Interest is taxed per your slab, with no TDS on listed demat holdings; capital gains taxation depends on the holding period.

Consistent Returns - Suitable for long-term planning

Flexible Payouts - Monthly, quarterly, or yearly options

Tradeable Instruments - Listed on stock exchanges

Reduced Volatility - Less impact from market swings