Non-convertible debentures (NCD) are fixed-income instruments, usually issued by high-rated companies in the form of a public issue to accumulate long-term capital appreciation. They offer relatively higher interest rates when compared to convertible debentures.
Applications need to be submitted with the broker authorised to collect application forms of the Issue and should also ensure that bank account mentioned on the form is of ASBA Bank eligible for accepting applications. All the details needs to proper filled including Name, Demat account details and Bank details of the client. Broker will bid the application and provide TRS to the Investor.
There are altogether 62 designated Banks to accept forms for Banking and Blocking of Funds.
Non‐Convertible Debenture is a financial instrument issued by Corporates for specified tenure to raise resources / funds through public issue or private placement. This debt instrument cannot be converted into equity. It is a fixed income instrument same as bank fixed deposit and can be traded on stock exchanges. Interest can be earned monthly / quarterly / annually / cumulative and on maturity principal amount is paid to the debenture holder.
If one is looking for an investment that generates fixed income periodically, NCDs may be an ideal investment as it offers: