Fixed Interest From Company Debt Issues
NCDs are company borrowings that pay a fixed coupon and cannot be converted into shares. We help you read the prospectus, rating and security before you apply.
Moderate to High, depending on the issuer's rating
Set in each prospectus; often around ₹10,000
Fixed tenure per series, as stated in the prospectus. Listed, but trading is often thin — plan to hold to maturity.
- Investors seeking fixed interest income over a defined tenure
- Those comparing alternatives to bank fixed deposits who understand credit risk
- Investors who can hold to maturity
- Investors able to diversify across several issuers
- Fixed coupon with monthly, annual or cumulative payout options, per series
- Multiple series with different tenures in a single public issue
- Secured or unsecured, as stated in the prospectus
- Listed on NSE / BSE and held in demat
- Interest: taxed at your slab rate; TDS may apply
- Listed NCDs held over 12 months: LTCG at 12.5% without indexation
- Other gains (short-term, or unlisted NCDs): taxed at slab rate
Tax treatment as per current law and subject to change; please consult a qualified Chartered Accountant before investing.
What Is an NCD?
A Non-Convertible Debenture (NCD) is a debt instrument issued by a company to borrow money from investors. It pays a fixed rate of interest and returns the principal at maturity, and — unlike convertible debentures — it cannot be converted into shares.
Companies, especially NBFCs and housing finance companies, often raise money through public NCD issues with several series of different tenures and payout options. The coupon is fixed for each series, but your money is exposed to the issuer's credit risk. WealthBay helps you access public NCD issues and understand the prospectus; the issuer is solely responsible for payments.
Public NCD Issues
| Issuer | Rating | Coupon | Tenure | Payout Options | Issue Dates | Min. Application |
|---|---|---|---|---|---|---|
| No public NCD issue is listed right now — ask us about open issues. | ||||||
Issue details are taken from the prospectus and exchange announcements; check the latest before applying. Listing an issue here is not a recommendation.
Secured vs Unsecured NCDs
| Aspect | Secured NCD | Unsecured NCD |
|---|---|---|
| Backing | Charge on specified assets of the issuer | No specific asset backing |
| Claim in a default | Claim on the charged assets, through the debenture trustee | Ranks behind secured lenders; subordinated NCDs rank lower still |
| Coupon | Usually lower than unsecured from the same issuer | Usually higher, to compensate for higher risk |
| Recovery | Can be better, but not certain | Can be low |
| Risk | Credit risk reduced, not removed | Higher credit risk |
NCD vs Bank Fixed Deposit
| Aspect | NCD | Bank FD |
|---|---|---|
| Issuer | Company (often an NBFC or HFC) | Bank |
| Credit risk | Depends on the issuer; check the rating | Bank credit risk |
| Deposit insurance | No such cover | Deposit insurance applies to bank FDs within DICGC limits |
| Liquidity | Listed; can sell on the exchange if there is a buyer, often at a discount | Premature withdrawal usually allowed, with a penalty |
| Taxation | Interest at slab rate; capital gains on sale as per holding and listing status | Interest at slab rate |
| TDS | May apply on interest, subject to thresholds | Applies on interest above the threshold |
Applying for a Public NCD Issue
Read the Prospectus
Check the issuer, rating and rating rationale, security, series, coupon, tenure and investor categories.
Choose a Series
Pick the tenure and payout option (monthly, annual or cumulative) that matches your cash-flow needs.
Apply via ASBA / UPI
Apply through your bank's ASBA facility or a broker app with a UPI mandate. The amount is blocked until allotment.
Allotment & Listing
NCDs are credited to your demat and listed on the exchange. Allotment may be proportionate if the issue is oversubscribed.
Risks to Understand Before Investing in NCDs
NCDs carry the credit risk of the issuer. A higher coupon usually signals higher risk.
- Interest and principal depend on the issuer's ability to pay; defaults can lead to partial or total loss.
- A credit rating is an opinion and can be downgraded.
- NCDs have no deposit insurance cover.
- Secondary market trading is often thin; selling before maturity may be possible only at a discount.
- Diversify across issuers rather than concentrating in a single NCD.
How to Invest
- 1
Review the Issue
We walk you through the prospectus, rating rationale, security and series of an open issue.
- 2
Apply
Apply via ASBA through net banking or a UPI mandate on a broker platform during the issue period.
- 3
Hold & Track
NCDs are credited to your demat after allotment; interest is paid to your linked bank account as per the series chosen.
Have questions about Non-Convertible Debentures (NCDs)?
Speak to our team — no obligation. We'll explain the options, risks and costs.
Common Questions About NCDs
Are NCDs the same as fixed deposits?
What does the credit rating tell me?
Can I exit an NCD before maturity?
Is a higher coupon better?
Disclaimer: NCDs carry credit and liquidity risk. Read the Prospectus before applying. Interest and principal payments depend on the issuer's ability to pay, and credit ratings can be revised.
WealthBay Private Limited — AMFI-registered Mutual Fund Distributor, ARN-29566. WealthBay acts as a distributor of third-party financial products and earns commissions from product providers. Please read all scheme / offer documents carefully before investing.
Ask Us About Open NCD Issues
Talk to us about current public NCD issues, their ratings, security and series, and whether they fit your income plan.