instruments · intermediate
NCDs
Non-Convertible Debentures are debt instruments that cannot be converted into equity shares.
Companies and NBFCs in India raise money through public or private NCD issues.
NCD terms include coupon, tenure, security status, and credit rating.
Listed NCDs can trade on exchanges, though liquidity varies widely by issue.
Investors assess issuer credit risk because principal repayment depends on the borrower.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.