September 25, 2010 2:31 pm
What is NCD & what are the features/benifits of taking it?
Which are the NCDs that are currently running in the market & at what return.
“NCD” is “Non Convertible Debenture” issued by corporates. This is fixed income instrument. NCD provides fixed return just like FD interest. Duration of NCD and rate of return are fixed at the time of issuing NCD. Some NCD are secured against asseets.
NCDs more or less work like company fixed deposit. One adavntage of NCD, at least in theory, is that they are listed on stock exchanges. Hence, provides liquidity to holder. However, there is normally not much volume for NCD. Hence, this advantage mostly remains on paper. For buying NCD, demat account is needed as these NCDs are credited to and debited from Demat account just like shares and no certificate is issued like FD.
I am not sure how many NCDs are listed as of now on exchanges. However, I guess there should be some provision on NSE / BSE website to get various information like number of listed NCD, their face value, current market price, current yield etc.
Ya but there are more feature.
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