NCD & Corporate bonds related FAQs

What are the steps involves in NCD allotment ?

These are the steps involved in NCD allotment.

  1. All Applications are compiled by the Registrar to the Issue.
  2. All eligible applications will be grouped based on investor categories: 'Institutional' or 'Non-Institutional,' 'High-Net Worth Individual', and 'Retail Individual Investments'.
  3. Allotments will be made according to the resrved criteria for each category.
  4. If there is a shortage of subscriptions in any category, preference will be given to the Retail Individual Investors and High Net Worth Individual Investors. The rest, if any are made, to applicants from the Non-Institutional investors. Institutional investors will follow on a first come, first served basis.
  5. Oversubscriptions will result in allotments being made to the maximum extent on a first-come, first-served basis, and then on a proportionate basis. This means that applicants who applied within one day of the oversubscription date are given full allocation. All other applicants are equally allocated, regardless of the size of their applications. If there are 1000 NCDs left, then there will be 1000 applicants, so each applicant will receive 1 NCD. If there are more applicants than NCDs, then the eligible applicants will be selected using a lot.

Differentiate between NCD and FD.

What are NCDs?

Who is eligible to issue NCD in India?

Can NCDs be issued by LLP?

Can NCDs be issued by private company?

What is the process to issue NCD in India?

How can we apply for NCD?

Why are NCDs issued by company?

if the NCD is issued at the share price of issuing company what will be the effectt?

What are the expenses indulged in issuing NCD?

What are the dissimilarities between Unsecured and Secured NCD ?

Who will be accepted by NCDs ?

What are the types of NCDs ?

How NCDs are different from Bonds ?

What are the Bond's Pros and Cons ?

What are the secured rights of NCD holders ?

Are NRIs allowed to invest in NCDs ?

In NCD ,what are call and put options ?

What is NCD ? Is this a Fixed deposit or a Share ?

NCD is Taxable or Not ?