Opportunity to earn profit- The bonds are listed and traded on the market, which gives an opportunity to trade and earn profits. The value of these bonds is inversely proportional to the interest rates in the economy.

1. Why NCD beats Company
Fixed deposit

2. • What is NCD?
NCD’s (Non-Convertible Debentures) refer to debentures which
can't be converted into shares or equities.
• A brief Introduction
An NCD might not ring a bell in the minds of most Indian
investors but is quite popular in the western world. The concept of
issuing NCD’s is relatively new to India, having been first issued by SBI
in 2008-09 to retail investors. The bonds are listed on BSE/NSE retail
debt terminal.

3. Advantages of investing in
NCD’s v/s Bank/Corporate Deposits

4. • NCD’s are in demat form- eliminates hassle of maintenance and safety
of physical certificates.
• NCD’s can be traded- The bonds issued under public offer are listed
on the BSE/NSE. Absence of lock in period ensures the investor can
exit before maturity.

5. • No TDS Deduction- Since the bonds are in demat form and are listed
there is no TDS.
• Opportunity to earn profit- The bonds are listed and traded on the
market, which gives an opportunity to trade and earn profits. The
value of these bonds is inversely proportional to the interest rates in
the economy.

6. • Secure- Unlike Bank deposits which can generally be insured upto a
certain limit, around Rs.1 lakh in most cases, NCD’s are secure in
nature.
• Pledging of NCD’s- Bonds can be pledged with banks/NBFC’s to avail a
loan or overdraft facility.

7. • Flexibility in tenure of maturity- The tenure of NCD’s could range from
less than a year to 30 years. This acts as a buffer against reinvestment
risk and also offers a steady source of income through interest.
• Earn interest income till date of transaction- If an investor sells the
bonds before their maturity he/she will get the accrued interest till
the date of the sale.

8. • Multiple interest payment options- An investor has the option to
choose either cumulative payment or regular payment on interest.
• No settlement risk- The transactions are confirmed off-market but are
settled on the NSE/BSE platform, thus eliminating settlement risk.

9. Thank You
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