What is NCDs?

Non Convertible Debentures are long term investment opportunities issued by companies to raise funds. The NCDs have no collateral and hence heavily dependent on the creditworthiness of the company. The credit scores of the company issuing the NCD should be considered before investing in such instruments. Even the NCDs are rated by the rating agencies. NCDs carry a fixed rate of interest and a fixed maturity period. The money is raised through a public issue. Subsequently, they are traded over the counter or on the exchange. Investors in NCDs should do a thorough check on the company that is issuing the debentures with a view to the reason that the funds are being raised. NCDs issued by high rated companies are generally safe and offer certain other benefits like tax exemptions at source and high liquidity as they are tradable on the stock exchange before they reach maturity.

How can we help?

We can help at two levels, first we can assist investors in assessing the credit rating and financial health of the companies issuing NCDs. We will analyse the terms and conditions of the NCD offer, evaluate the risk associated with the interest rate and creditworthiness of the issuer, and guide to suitable NCDs that align with the investor's income requirements and risk tolerance. The second place where we can assist is to execute the transaction.