Ans. An NCD is a fixed income instrument issued by companies to raise capital. Investors earn a fixed coupon rate at regular intervals, and the principal is returned at maturity. Unlike convertible debentures, NCDs cannot be converted into equity, making them pure debt investments.
NCDs (Non-Convertible Debentures)
Non-Convertible Debentures (NCDs)
Earn predictable returns with carefully selected, secured fixed income opportunities.
What are NCDs?
Non Convertible Debentures (NCDs) are fixed income instruments issued by corporates to raise long term capital. Unlike convertible debentures, NCDs cannot be converted into equity shares, making them pure debt instruments with varied interest payouts and tenures.
Interest options:
Monthly | Quarterly | Half-Yearly | Annual | Cumulative
Flexible tenures: 24 | 36 | 60 | 72 | 84| 120
NCDs Are Increasingly Preferred by Investors Seeking:
Stable IncomesProvides consistent returns through fixed coupon rates
Better ReturnsOffers higher yields compared to traditional debt products
DiversificationReduces risk by offering an alternative to market-linked investments
Visibility & PredictabilityAllows investors to forecast cash flows with certainty
Why Consider NCDs for Your Investment Portfolio?
NCDs are a cornerstone of a well balanced fixed income strategy. They offer a mix of safety, steady returns, and liquidity through stock exchange listing.
Key Benefits of NCD Investment
1. Predictable & Stable Returns
NCDs provide regular interest payouts monthly, quarterly, or annually, depending on the structure.
2. Higher Yields Than FD
Corporate NCDs often offer higher coupon rates compared to bank FDs and many corporate FDs.
3. Secured Options Available
With secured NCDs, the company pledges assets to protect investor interests.
4. Liquidity Through Exchange
Listed NCDs can be bought/sold in the secondary market, offering flexibility unlike locked FDs.
5. Ideal for Long Term Income
Perfect for retirees, income focused investors, and those looking to reduce portfolio volatility.
Types of NCDs - You Can Invest InWe help you evaluate and allocate across :
Secured NCDs
Backed by company assets; safer and preferred by conservative investors.
Unsecured NCDs
Offer higher yields but come with higher credit risk.
Short Term NCDs
1-3 years maturity ideal for short-term fixed-income planning.
Long Term NCDs
5-10 years maturity is good for stable, long term income.
Listed NCDs
Buy at discount or premium based on yield expectations.
How NCDs Work -
A Simple Breakdown
1. Issuance Companies issue NCDs to raise debt capital.
2. Coupon Payout Investors earn interest at fixed intervals monthly, quarterly, semi annual, or annual, cumulative.
3. Maturity The principal is returned at the end of the tenure.
4. Taxation Interest from NCDs is taxable as per your income slab. If sold before maturity, capital gains tax applies based on holding period.
Who Should Invest in NCDs?
- Investors seeking stable, assured income
- Retirees wanting predictable cash flows
- Investors diversifying away from equity volatility
- HNIs building multi product fixed income portfolios
- Individuals looking for higher returns than FDs
- Investors seeking credit rated, structured debt instruments
NCDs vs Fixed Deposits: What's Better?
| Feature | NCDs | Fixed Deposits |
|---|---|---|
| Returns | Higher coupon rates | Moderate |
| Liquidity | Tradable in secondary market | Limited / premature withdrawal penalties |
| Nature | Market linked pricing | Not tradable |
| Taxation | Taxable interest | Taxable interest |
| Security | Secured/Unsecured | Mostly secured |
NCDs offer higher yields and market liquidity, making them a strong alternative to traditional deposits.
How to Invest in NCDs Through JekotaWe simplify the entire process with transparent evaluation and expert advisory.
Requirement Assessment
We evaluate your risk profile, returns expectations, and investment horizon.
Corporate Screening
Our research team analyses Credit rating, Financial stability, Interest coverage and Asset security.
Allocation Strategy
We create a balanced, fixed income allocation suited to your portfolio.
Execution & Tracking
Subscribe primary issuances, Buy listed NCDs and Monitor yields, risks and maturity profile.
Why Investors Trust Jekota for Their Fixed Income Needs
Backed Product Selection
We shortlist NCDs based on credit quality, interest coverage, and long term sustainability.
Transparent Advisory
No hidden objectives. No biased recommendations. Only data driven investment advisory.
Risk Controlled Allocation
Your portfolio is designed to balance safety, returns, and liquidity.
End to End Support
From onboarding to maturity tracking, everything is managed with precision.
Want to discover current NCD options available in the market?
Connect NowWhat Our Clients SayTrusted by Investors
Across India
My 5–8 year journey in Mutual Funds, Bonds, and MLDs has been smooth, thanks to the supportive staff and practical investment advice.
Himanshu BudhirajaBusinessman
Their experienced team helped me diversify my portfolio and has always been available on one call with excellent post-investment support.
Gufran AhmedBusinessman
Over the last 5 years, their team has always provided timely updates, clear guidance, and quick support. I would happily give them 10/10.
Sanjay MittalBusinessman
Begin Your NCD Investment
Simple, secure, research driven fixed-income opportunities curated for stability and growth.
Insights, updates, and perspectives on markets, planning, and risk
Explore blogsDisclaimer
NCDs involve credit, market, and liquidity risks. Ratings may change and don't assure safety. Returns and principal are not guaranteed. Please review offer documents and assess suitability. Jekota does not assure returns or capital protection.
FAQs About Non-Convertible Debentures
Q.1 What is an NCD (Non Convertible Debenture) and how does it work?
Q.2 Are NCDs safe to invest in?
Ans. NCD safety depends on the issuer's credit rating, financial health, and whether the NCD is secured or unsecured. Secured NCDs are safer because they are backed by company assets. Ratings from CRISIL, ICRA, and CARE help assess risk.
Q.3 What are the benefits of investing in NCDs?
Ans. NCDs offer predictable interest payouts, higher yields than fixed deposits, liquidity through stock exchange listing, and multiple tenure options. They are ideal for stable, income focused investing.
Q.4 What is the difference between secured and unsecured NCDs?
Ans. Secured NCDs are backed by company assets, offering higher safety. Unsecured NCDs offer higher returns but carry higher credit risk. Investors should review credit ratings before investing.
Q.5 How are NCD returns (interest) paid to investors?
Ans. NCDs pay interest (coupon) monthly, quarterly, semi annually, annually, or cumulatively, depending on the series selected. The payout structure is defined in the offer document.
Q.6 What is the taxation on NCDs?
Ans. Interest earned on NCDs is taxed as per your income tax slab. If sold before maturity, capital gains tax applies short-term or long-term depending on the holding period.
Q.7 Can NCDs be sold before maturity?
Ans. Yes. Listed NCDs trade on stock exchanges, allowing investors to buy or sell before maturity. Prices may vary based on market yields, interest rates, and credit conditions.
Q.8 Are NCDs better than fixed deposits (FDs)?
Ans. NCDs generally offer higher coupon rates and better liquidity through market listing. FDs offer stable but lower returns and limited liquidity. NCDs are preferred by investors seeking higher yields with controlled risk.
Q.9 Who should invest in NCDs?
Ans. NCDs suit retirees, conservative investors, HNIs, income focused individuals, and those seeking predictable returns and diversification away from equities.
Q.10 How does Jekota help investors choose the right NCDs?
Ans. Jekota evaluates issuers based on credit rating, financial strength, interest coverage, security backing, and yield structure offering unbiased, research backed NCD recommendations.