Debentures are a good investment tool for investors wanting to manage liquidity and risks while offering substantial returns. Debentures are of two types, convertible debentures and non-convertible debentures (NCD) and Non-convertible debentures (NCD).

1. What is
meant by
non-
convertible
debentures?

2. Debentures are a good investment tool for investors wanting
to manage liquidity and risks while offering substantial
returns. Debentures are of two types, convertible debentures
and non-convertible debentures (NCD) and Non-convertible
debentures (NCD).
● What are non-convertible debentures (NCDs)?
❖NCDs are issued by corporate organizations to raise
funds from the public
❖They are quite similar to a bond
❖Are a debt investment where the money of the
investor is not put into the stock market
❖NCDs have a fixed maturity date
❖They offer monthly, quarterly, half-yearly, annual
and cumulative options on interest payouts.

3. ● Why invest in NCD?
❖Good returns
✔ Secured NCDs provide a higher interest rate
to their investors
❖Good liquidity
✔ Sell NCD investments on stock exchanges or
exercise the Put/Call option
❖Diversification
✔ NCD Investments add diversification to your
portfolio with income security
❖Better tax benefits in comparison to convertible
debentures