What are the types of NCDs and Bonds?
NCDs are financial instruments used by corporations to raise capital through public issues. In simple terms, NCDs are debt instruments with a fixed tenure.
There are two types of NCDs:
1. Secured NCD -
A secured NCD is backed by company assets. If the company fails to pay, investors can claim the payment through the liquidation of assets.
2. Unsecured NCD -
An unsecured NCD is not backed by company assets, increasing the chances of risk.
Still have questions?
Do I need to keep funds in the trading account while placing orders for NCD and Bonds?
What are NCD bonds and how can I apply for them?
Where can I check my holdings of my bonds?
How to invest in NCD/ Tax Saving Bond/ Tax Free Bond from Secondary market? Or How to buy/ sell NCD/ Tax Saving Bond/ Tax Free Bond which are already listed?