Non-Convertible Debentures (NCDs)

Non-Convertible Debentures (NCDs)

NCDs are fixed-income instruments that offer predictable, periodic returns. These debt securities are issued by corporates to raise capital and are an attractive option for conservative investors.

What You Get:

• Fixed returns ranging from 7% to 11% per annum, depending on credit rating
• Tenure options from 1 year to 10 years
• Investment in rated NCDs (AAA/AA+) from credible issuers
• Primary and secondary market participation

Regulatory Note:

NCDs are regulated under the Companies Act and SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021. Investors must assess credit ratings and liquidity risks.

Statistics:

As of 2024, the Indian listed NCD market crossed ₹4 lakh crore, with rising retail participation (Source: NSE).

Who It’s For:

Risk-averse investors such as retirees or fixed-income seekers looking for reliable returns.