Bonds
Non-Convertible Debentures (NCD)
Non-Convertible Debentures are fixed-income instruments issued by corporates to raise capital. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company. They offer regular interest payouts and principal repayment at maturity, making them suitable for investors seeking stable income and relatively lower risk compared to equity investments. NCDs are available in secured and unsecured variants and are generally listed on recognized stock exchanges.
Market Linked Debentures are structured fixed-income securities, where the returns are linked to the performance of an underlying market index or asset class (such as equity indices, government securities, or commodities). MLDs offer the potential for enhanced returns over traditional debentures, with varying risk-reward profiles based on their structure. They are typically issued for medium to long-term tenors, providing investors with risk-adjusted opportunities for capital appreciation and income.
