NCDs allow the companies to borrow money from investors by offering a fixed interest rate over a defined period. Unlike convertible debentures, NCDs cannot be converted into company shares, making them a debt instrument.

NCD refers to Non-Convertible Debenture (NCD). This is a type of debenture issued by companies to raise capital and cannot be converted into shares in the company. Instead, investors receive fixed interest payments and their capital back on maturity.

Secured NCDs are considered safer because the company’s assets back them. If the company cannot pay the interest, investors can get their money back by selling the company’s assets. However, they offer lower interest rates compared to unsecured NCDs. On the other hand, unsecured NCDs carry a higher risk as the company's assets do not back them.

Non-convertible debentures (NCDs) allow investors to lend money to a company for a fixed interest rate over a defined tenure. Companies issue NCDs to raise funds for purposes such as expansion, working capital, or debt repayment. Investors receive periodic interest payments, and the principal amount is repaid at maturity. Listed NCDs can also be bought or sold on stock exchanges, providing liquidity to investors.

Non-convertible debentures (NCDs) can be purchased through the primary market via an NCD IPO or in the secondary market. Investors can apply offline or online for the NCD IPO by submitting a physical application form to an intermediary using the ASBA mechanism. Retail investors can also use the UPI mechanism. When applying online, investors must provide NCD details, depository participant (DP) details, and payment information. Verifying whether your broker supports online applications for NCD IPOs is a must.

Each NCD is assigned a unique symbol within the trading system, which includes a series identifier to distinguish it from other securities.