Frequently Asked Questions

Can NCDs be issued by private company?

Private companies can issue NCDs of both secured and unsecured types. However, they are not allowed to issue voting rights-bearing debentures. Private companies that issue secured NCDs must meet the SEBI criteria.


Can NCDs be issued by LLP?

Limited Liability Partnership (LLP), partners have limited liability. According to the Companies Act 2013, LLP can not issue a debenture for fundraising. Only partners are allowed to contribute if the company has capital requirements. They do not have rights to …


Who is eligible to issue NCD in India?

Businesses issue NCDs to raise funds. If a business meets the following criteria, it is eligible to issue NCDs. A net worth => Rs. 4 crore A bank has approved a working capital limit or a term loan The bank …


Define NCD Public issue.

To raise long-term capital via public issues, companies issue NCDs and then collect the money from the public. It is listed on stock exchanges and can be traded as a tradable instrument.


What are NCDs?

Companies issue non-convertible debts (NCD) to raise funds for various financial goals. They have a fixed term and offer an investor a fixed rate return.


Differentiate between NCD and FD.

NCD v/s FD NCD VS FD Corporates Issued through Banks & Corporates 9%p.a - 10 % p.a Interest rate 4%p.a - 7 % p.a Taxable interest Taxation Taxable interest No (if its dematerialisation plan and being listed) TDS Applicable (10% …


Who is liable authority for IDR holders Grievances?

Indian securities laws and regulations govern IDRs. Grievance redress mechanisms will be the same as those for equities in India.


How can a person who holds IDR in India practice their voting rights in corporate office?

IDR holders are entitled to vote on the resolutions of the issuer with regard to the Shares that underlie the IDRs. IDR holders have the right to ask the Depository for their voting rights in relation to the shares represented …


The Indian securities regulations and reporting rules will vary from one country to the next. Is the issuer going to change its global reporting practices?

The IDR Listing Agreement states that the issuer will be subject to the reporting regime in place in the country where it is listed.


Who is eligible to hold IDRs?

The current Indian rules and regulations allow IDRs to be purchased, transferred, and held by Indian residents, as well as foreign institutional investors (FIIs), and non-resident Indians (NRIs). This includes SEBI-approved sub-accounts that FIIs have registered with SEBI.


How does IDR can be traded?

IDRs can be traded on Indian stock exchanges as soon as they are listed and issued. This will be in the same way that other listed securities in India can be traded. Investors will receive IDRs in dematerialized form, with …


What do you mean by IDR?

IDR is Indian Depository Receipt. An Indian Depository Receipt (IDR) is a receipt issued by an Indian depository. It is denominated using Indian Rupees. Each IDR represents an ownership interest in a set number of shares or fractions of shares …


Can my PAN card number be change ?

You cannot change your PAN card number as it is illegal to have more than one. If an individual fails to comply with this requirement, the government can send a notice and impose a penalty of Rs. 10,000 You can …


How can I correct spelling mistake in father's name on PAN card?

The 'Correct of PAN Card data request' covers correcting the name on a PAN Card. This request is similar in nature to a change in photo or change in date of Birth. Visit NSDL Pan Service. Complete the online form …


Why PAN card is mandatory to open demat account ?

The Securities and Exchange Board of India (Securities and Exchange Board of India) has made it mandatory to have a Permanent Account Number (PAN), in order to improve 'Know Your Client’ norms. To open a demat account, you must provide …


With different name and signature on PAN card how can I do dematerialize my shares?

A PAN card with an English signature was issued to me. Due to frequent complaints about signature mismatch, I later changed it to Hindi. I also did a small verification of my pan name. New PAN Card now has Hindi …


Is PAN card mandatory to deposite more than 50,000 in a bank account ?

A PAN card is required to deposit more than Rs. 50,000 into a bank account. According to the RBI circular, it is mandatory to quote your PAN number when opening an account or making time deposits exceeding Rs 50,000.


Can I use my mother's Ration card as my ID proof for issuing PAN card ?

The Ration Card with a photograph of your mother as a Head of Family can only be used for identification purposes. You will still need to provide proof of her address and date of birth proof. You can find the …


What can be the maximum length of Name on PAN card?

A PAN Card can not carry a name that exceeds 25 characters. Candidates with longer names must use an abbreviation of the name, but no nicknames or aliases. PALLAVI KUMARI PANDEY can be abbreviated to PALLAVI PANDEY . You can …


Can i add name on the basis of alias on PAN card ?

The ability to add an alias name to a PAN Card is not available. It is illegal to have two PAN Cards, one for each name. Only one name can be used for PAN Card and all investments.