Non-Convertible Debentures (NCD) are fixed income instruments issued by companies to raise funds to meet various financial goals. They are issued for a fixed tenure and offer a fixed rate of returns to the investor.
Non‐Convertible Debenture is a financial instrument issued by Corporates for specified tenure to raise resources / funds through public issue or private placement. This debt instrument cannot be converted into equity. It is a fixed income instrument same as bank fixed deposit and can be traded on stock exchanges. Interest can be earned monthly / quarterly / annually / cumulative and on maturity principal amount is paid to the debenture holder.