What are the things to consider before investing in NCDs?
"Ratings: Rating agencies use simple alphanumeric symbols to convey credit ratings. For example, rating agencies assign credit ratings to debt obligations on three basic scales: the long‐term scale, the short‐ term scale, and the fixed deposit scale. AAA is the highest Credit rating by indicating highest safety. Higher rating indicates timely servicing of debt obligations by the issuer and lower amount of credit risk.
Secured or Unsecured NCDs: Secured NCDs are secured against an assets, unlike unsecured NCDs. If the bonds are secured, in the event of winding up of the company, it would sell off the assets against which the bonds were secured and repay the investor.
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Are NCDs safe investments?
Although NCDs are considered safe investments for retail investors, they should always look into the credibility of the issuing company before investing. Secured non-convertible debentures are backed by the company's assets, which makes that low ...
What is Global Investing?
Global Investing is the platform through which investors can invest in US Equities and ETFs. IIFL Securities has partnered with Stockal based in New York with offices in Bangalore. With over 40 years of capital markets experience, the Stockal team ...
What is the process to invest in Global Investing?
Login into IIFL markets App Click on Hamburger menu option Invest > Global Investing You will get redirected to Global Investing landing page You can either sign-up/ sign-in You will get redirected to Stockal’s global investing platform where you can ...
What is public issue of NCDs and ISIN?
All Non-Convertible Debentures (NCDs) issued through Initial Public Offer gets listed on the Capital Market segment of the Exchange. Every security in the trading system is given a symbol with series representative of the security (ISIN).
Is Demat account necessary to invest in these NCDs
Having a Demat account to invest in NCDs is essential as most debentures are issued in dematerialised mode. Open a free Demat account with IIFL Securities in under five minutes and invest in various financial instruments from the app.