Upcoming NCD Issues: What to Watch This Quarter
Latest issues · High yield
Non-Convertible Debentures from rated Indian corporates offer yields often 200–300 bps above bank FDs. Here's how to evaluate what's worth watching this quarter.
The Basics
What are NCDs?
NCDs are bonds issued by companies to raise public debt. They offer a fixed coupon — monthly, quarterly, or at maturity — and are listed on exchanges, giving holders a secondary market exit option. Unlike convertible debentures, they cannot be converted into equity.
Due Diligence
How to evaluate an NCD
Credit rating first
AAA-rated NCDs are the safest. AA and A-rated issues carry higher yield but meaningfully higher default risk. Never chase yield without understanding the rating.
Issuer's balance sheet
Check debt-to-equity, interest coverage, and asset quality. A high-yielding NCD from a stressed issuer is a credit bet, not a fixed-income product.
Tenure and liquidity
Longer tenures lock in higher yields but reduce flexibility. Check secondary market liquidity before committing beyond 5 years.
Tax treatment
NCD interest is taxable per your income slab. Factor this into effective yield before comparing to debt mutual funds.
Allotment risk
Popular issues close early. Apply early — AAA-rated issues tend to be oversubscribed.
Our Take
Our view this quarter
Interested in NCDs for your portfolio?
Talk to an AdvisorInvestments in fixed income instruments are subject to credit and interest rate risk. Please read all offer documents carefully. MMTZ Wealth is a SEBI-registered Mutual Fund Distributor (AMFI ARN holder). For informational purposes only — not investment advice.