What are NCDs ?
Non Convertible Debentures or NCDs are debt (fixed income) instruments that are issued for fixed maturity. NCDs shall be issued at face value and will carry a coupon rate as determined by the issuer. Normally redemption periods of these instruments range from 3-10 years. These instruments offer coupon rate ranging from 11-12%. Investors have the option to exit from these instruments before full tenure by selling in the secondary market, when these instruments are listed on exchanges. In the recent past,…