NCD (Non-convertible debentures)

Non-Convertible Debentures (NCDs) are fixed-income instruments issued by companies to raise funds from investors. They offer regular interest payments and a fixed maturity but cannot be converted into equity shares. NCDs are suitable for investors seeking stable returns with relatively lower risk compared to equities, depending on the issuer’s credit rating.

Chapters

1. Introduction to NCD

Non-Convertible Debentures (NCDs) are debt instruments issued by companies to raise funds from investors. They offer fixed interest income and a defined maturity period but cannot be converted into equity shares, making them suitable for income-focused investors.

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2. NCD IPO

An NCD IPO allows companies to raise capital by offering debentures to the public. Investors subscribe to NCDs for regular interest payments and capital safety, subject to the issuer’s financial strength and credit rating.

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3. NCD IPO Process

The NCD IPO process includes appointing intermediaries, filing offer documents, receiving regulatory approvals, opening the issue for subscription, allotment of debentures, and listing on stock exchanges for public trading.

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4. NCD Intermediaries

NCD Intermediaries include merchant bankers, trustees, registrars, legal advisors, rating agencies, and stock exchanges. These entities manage the issue, ensure regulatory compliance, protect investor interests, and facilitate smooth issuance and listing.

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5. NCD Offer Document

The NCD offer document provides detailed information about the issuer, financials, risk factors, interest rates, tenure, security, and repayment terms. It helps investors evaluate the safety, returns, and suitability of the NCD investment.

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6. NCD Investors

NCD Investors include retail investors, high net-worth individuals, corporates, and institutional participants. Different investor categories have specific allocation limits, enabling wide participation while balancing risk and return expectations.

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7. NCD Application Process

The NCD application process allows investors to apply through ASBA, online trading platforms, or physical forms. Investors select series, quantity, and investment category during the issue period for participation.

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8. NCD Subscription and Allotment Process

NCD subscription indicates demand across investor categories during the issue period. Allotment is generally done on a first-come, first-served basis or proportionately, followed by credit of debentures to investors’ demat accounts.

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9. NCD Credit Rating

NCD credit rating reflects the issuer’s ability to meet interest and principal repayment obligations. Ratings provided by accredited agencies help investors assess risk levels and compare NCDs based on safety and financial stability.

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10. NCD Comparison

NCD comparison helps investors evaluate different NCD issues based on interest rate, credit rating, tenure, security, tax implications, and issuer strength, enabling informed investment decisions aligned with financial goals.

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NCD (Non-convertible debentures)

Chapters

1. Introduction to NCD

2. NCD IPO

3. NCD IPO Process

4. NCD Intermediaries

5. NCD Offer Document

6. NCD Investors

7. NCD Application Process

8. NCD Subscription and Allotment Process

9. NCD Credit Rating

10. NCD Comparison