Non-convertible debentures or NCDs are debt financial instruments that are used to raise long-term capital by the company. People who invest in NCD available in market receive regular interest.

1. An Insight into Non-
Convertible
Debentures (NCDs)

2. What are Non-Convertible Debentures?
Non-convertible debentures or NCDs are debt financial instruments that are used to
raise long-term capital by the company. People who invest in NCD available in
market receive regular interest.
Types of Non-Convertible Debentures (NCDs)
Secured NCDs
These non-convertible debentures are secured by the company; in case of default,
the person can liquidate the asset to claim value.
Unsecured NCDs
These non-convertible debentures are not backed by the company.

4. The Benefits of Non-Convertible Debentures
 Usually, NCD offers higher returns.
 Investing in NCD gives greater liquidity.
 Interest received from NCD is not subject to TDS under the Income Tax Act.
Important Considerations before Investing in NCDs
 Rate of return of non-convertible debentures
 Interest pay-out of the NCD, whether it is quarterly, half-yearly, or yearly
 The tax rate on the NCD
 Credit, repayment history and other details of the company