Non-Convertible Debentures

Seeking more from
fixed income?

Build your fixed income allocation with corporate debt instruments offering fixed coupon payments and defined investment horizons.

Understand NCDs with our Wealth Desk

Share a few details. Our wealth team will connect for a review-led discussion around issuer quality, rating, coupon, payout, tenure, liquidity, tax, and portfolio fit.

The right NCD opportunity begins with understanding your liquidity needs.

Issuer and rating reviewed

The company behind the payout matters as much as the coupon.

Coupon checked against risk

A higher coupon should raise better questions, not faster action.

Liquidity discussed upfront

Listed instruments can offer liquidity, but trading activity and pricing may vary across issuances.

Portfolio role discussed

An NCD should support your fixed-income structure, not sit as a random product.

NCD basics

What is a Non-ConvertibleDebenture?

  • Non-Convertible Debenture is a debt instrument issued by a company or institution to raise money from investors.
  • The investor receives interest or a coupon as per the issue terms. Principal repayment is expected at maturity, subject to issuer creditworthiness and product terms.
  • Non-convertible means the debenture does not convert into equity shares.

Nature: Debt instrument

Payout: As per issue terms

Maturity: Defined by issue

Conversion: No equity conversion

Main check: Issuer credit quality

Portfolio role

What role can NCDs play in a portfolio?

NCDs should not be chosen only for the coupon. They should be reviewed for the role they play in your overall portfolio.

01

Income-oriented allocation

For investors evaluating defined coupon payouts as part of fixed-income exposure.

02

Regular payout planning

For investors looking at monthly, quarterly, annual or cumulative payout structures, subject to issue terms.

03

Debt diversification

For investors who want debt exposure beyond bank deposits and mutual funds.

04

Yield enhancement

For investors considering a higher yield.

05

Fixed income layer for serious portfolios

For HNI/PCG portfolios where credit, liquidity and tax need visible review.

Structure types

Types of NCDs investors may come across.

NCD terms can change the risk and payout experience. Review the structure before comparing coupons.

Compare correctly

Compare fixed-income routes by role, not only by return.

Each route solves a different portfolio problem. Compare structure, risk, liquidity, tax and control before deciding.

01

FD

What it is

Bank deposit or corporate deposit, depending on the issuer.

Return/payout style

Interest as per deposit terms.

Liquidity

Usually defined in terms of premature withdrawal.

Portfolio role

Conservative cash/deposit allocation.

02

NCD

What it is

Company/institution-issued debt instrument.

Return/payout style

Coupon/payout as per issue terms.

Liquidity

Depends on issue and market depth.

Portfolio role

Income-oriented direct issuer exposure.

03

Bond

What it is

Debt security issued by a government, a company or an institution.

Return/payout style

Coupon or yield as per bond terms.

Liquidity

Depends on bond type and market depth.

Portfolio role

Debt allocation and tenure matching.

Learn More: Bond
04

Debt Mutual Fund

What it is

Pooled debt fund managed by an AMC.

Return/payout style

NAV-linked return, not a fixed coupon to the investor.

Liquidity

Redemption generally available, subject to scheme terms.

Portfolio role

Diversified debt fund exposure.

Learn More: Debt Mutual Fund
05

Corporate FD

What it is

Deposit with a company/NBFC as per terms.

Return/payout style

Interest as per deposit terms.

Liquidity

Premature exit depends on issuer rules.

Portfolio role

Defined deposit-style exposure with issuer risk.

Learn More: Corporate FD
06

MLD

What it is

Structured debt product with market-linked payoff.

Return/payout style

Payoff linked to a defined market condition.

Liquidity

Exit may happen at market value, if available.

Portfolio role

Structured debt exposure.

Learn More: MLD
How Choice Wealth helps

How Choice Wealth helps with NCDs.

We do not begin with the coupon. We begin with the credit.

We help investors review NCD and fixed-income opportunities through issuer quality, rating, coupon, payout, tenure, tax, liquidity and portfolio role.

01Access to select NCD and fixed-income opportunities

Subject to availability, eligibility, issue terms and documentation.

02Transparent investment access

Clear visibility of pricing, structure, and charges, ensuring informed decisions without hidden complexities.

03Tenure and liquidity discussion

Match maturity to your cash-flow needs and exit expectations.

04Tax impact flagging

Identify where tax/TDS review is needed before allocation.

05Portfolio-fit conversation

Place NCDs inside your broader fixed-income and wealth structure.

06Documentation and execution support

Move from review to action only after documents and terms are understood.

07Dedicated relation and ongoing support

Continuous engagement with an experienced professional to help manage and evolve your fixed-income allocation over time.

Before you choose

Choose Confidence
Over Guesswork.

FAQs

FAQs for
NCD investors.

Scroll through, each answer opens on its own as you move down the list.

01What is an NCD?

An NCD is a Non-Convertible Debenture. It is a debt instrument issued by a company or institution where investors receive coupon or interest as per issue terms. It does not convert into equity shares.

02What is the full form of NCD?

NCD stands for Non-Convertible Debenture.

03How does an NCD work?

An issuer raises money through an NCD. Investors receive coupon or payout as per issue terms, and principal repayment is expected at maturity, subject to issuer creditworthiness and product terms.

04What does non-convertible mean?

Non-convertible means the debenture does not convert into equity shares of the issuer.

05Who should consider NCDs?

NCDs may be considered by investors seeking income-oriented fixed-income allocation who can review issuer risk, rating, tenure, payout, liquidity and tax treatment before allocation.

06Who should avoid NCDs?

Investors seeking risk-free income, instant liquidity, FD-like certainty or only the highest coupon without issuer review should be cautious.

07Are NCDs safe?

NCDs are not risk-free. They carry issuer, credit, liquidity, interest-rate, market price, tax and other risks. Secured or rated NCDs also need review.

08What is the difference between secured and unsecured NCDs?

Secured NCDs have identified security or asset cover as per issue terms. Unsecured NCDs do not have specific asset backing. Secured does not mean risk-free.

09Are secured NCDs risk-free?

No. Secured NCDs can still carry issuer risk, liquidity risk, market price risk and security enforcement risk.

10Are NCDs better than FDs?

NCDs and FDs solve different needs. NCDs may offer issuer-specific debt exposure and coupon structures, while FDs follow deposit terms. Compare issuer, protection framework, liquidity, tax and risk before deciding.