What Are NCDs? A Complete Guide to Non-Convertible Debentures for Smart Investors
In the world of fixed-income investing, Non-Convertible Debentures (NCDs) have emerged as one of the most attractive options for investors seeking stable returns , lower risk , and diversified portfolios . Whether you are a conservative investor or someone looking to balance equity exposure, NCDs offer a compelling combination of predictable interest, credibility, and liquidity . In this blog, we break down everything you need to know — from what NCDs are, how they work, types, risks, returns, taxation, and whether they fit into your investment strategy. What Are NCDs? A Non-Convertible Debentures (NCD) is a type of debt instrument issued by companies to raise long-term capital. These are called “non-convertible” because they cannot be converted into shares of the company at a later stage. Instead of equity conversion, investors receive: Fixed interest (coupon rate) Principal repayment at maturity NCDs are listed on stock exchanges and can be bought or sold, off...