NCD & Corporate bonds related FAQs

What is the process to issue NCD in India?

Here's how to issue NCDs:

Board meets with issuer to decide NCDs type.

The Companies Rules 2014 must be followed in order to issue secured NCDs.

It must appoint a trustee for debentures with approval by SEBI.

At the board meeting, form no. PAS-4,PAS-5, debenture trustee agreement, appointment of an expert date of conducting shareholder meetings, borrowing powers and debenture subscriber agreement are all taken at the board meeting.

Drafts of important details such as debenture trustee agreements, debenture subscription agreements, mortgage agreements, and records on private placement offers are prepared.

The company's assets are charged by a Board Resolution.

The Board of Directors is authorized to keep a separate account for NCD issues.

A letter of offer is sent to shareholders. The bank account is then opened.

After allotment of NCDs, file an offer letter to the Registrar of Companies.

Reconvene a board meeting to discuss the allotment issue, approval and modification of the draft agreement.

Within six months of the date of allocation, the certificate of debentures will be issued.

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?

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 ?

What are the steps involves in NCD allotment ?

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 ?