Non-Convertible Debentures (NCDs)

Fixed-income investment with steady returns

At Rainbow Stock Vision Pvt Ltd, we help you diversify your fixed-income portfolio through carefully selected Non-Convertible Debentures (NCDs). These instruments are ideal for investors seeking predictable interest income and capital protection over a fixed term.

What Are NCDs?

Non-Convertible Debentures (NCDs) are fixed-income financial instruments issued by companies to raise capital. Unlike convertible debentures, NCDs cannot be converted into shares and are repaid at maturity. They offer higher interest rates than traditional fixed deposits and are listed on stock exchanges for liquidity.

Types of NCDs

Secured NCDs

Backed by company assets. In case of default, investors have a legal claim on the underlying collateral.

Unsecured NCDs

Not backed by assets. Offer slightly higher interest but carry higher credit risk.

Cumulative NCDs

Interest is compounded and paid at maturity, ideal for long-term goals.

Non-Cumulative NCDs

Pay regular interest (monthly/quarterly/annually). Best for generating periodic income.

Why Invest in NCDs?

  • ✔ Attractive Interest Rates: Typically higher than bank FDs.
  • ✔ Periodic Income: Choose payout options that match your cash flow needs.
  • ✔ Credit Rated: Issued by companies rated by agencies like CRISIL, ICRA, etc.
  • ✔ Listed on Exchanges: Allows exit before maturity through secondary market trading.
  • ✔ Fixed Tenure: Typically ranges from 1 to 10 years, depending on issuer.

Non-Convertible Debentures are a smart choice for investors who want stable returns with moderate risk. Let Rainbow Stock Vision Pvt Ltd assist you in selecting the right NCDs to suit your investment goals.