Meaning
Non-Convertible Debentures (NCDs) are popular fixed-income investment options for investors seeking stable returns.Definition
NCDs are debt instruments issued by companies to raise capital. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company. They promise fixed interest payments over a specified tenure.Key Features
- Full form: Non-Convertible Debentures.
- Offer fixed interest rates.
- No equity conversion option.
- Have a specific maturity period.
Investor Benefits
Investors receive regular interest income and the principal amount back at maturity, making NCDs a relatively stable investment choice for predictable returns.Author
