Non-Convertible Debentures (NCDs)
NCDs offer fixed returns higher than FDs, with the safety of listed instruments on NSE/BSE. Issued by NBFCs, housing finance companies, and corporates — NCDs let you lock in a coupon rate for a defined tenure and trade on the exchange if you need liquidity before maturity.
NCD vs Fixed Deposit (FD)
Tax treatment: NCD interest is taxable as per your income slab (same as FD). However, if you buy NCDs on the secondary market at a discount, the capital gain may be taxed at 12.5% LTCG (after 24 months) — more tax-efficient than interest income.
Risk warning:NCD returns depend entirely on the issuer's ability to repay. Unlike bank FDs, NCDs above ₹5 lakh are not covered by DICGC deposit insurance. Credit ratings can change — always check the latest rating before investing. Listed NCDs can trade below face value on secondary markets.
| Issuer | Rating | Coupon | Frequency | Tenor | Secured | Maturity | NSE Symbol |
|---|---|---|---|---|---|---|---|
Muthoot Finance Gold NBFC Secured NCDs from India's largest gold loan NBFC. Backed by gold loan receivables. Strong track record of repayment. | AA+CRISIL | 8.75% p.a. | Annual | 3 years | Secured | 15 Apr 2027 | MUTHOOTFIN24 |
Shriram Finance Vehicle Finance NBFC Secured NCDs from Shriram Finance, a leading commercial vehicle and consumer finance NBFC. Monthly income option available. | AA+ICRA | 9.1% p.a. | Monthly | 5 years | Secured | 10 Jun 2029 | SHRIRAMFIN24 |
Mahindra Finance Vehicle Finance NBFC AAA-rated secured NCDs from Mahindra & Mahindra Financial Services. Primarily lends to rural and semi-urban vehicle buyers. | AAACRISIL | 8.05% p.a. | Annual | 3 years | Secured | 1 Dec 2026 | MMFSL23 |
Bajaj Finance Consumer Finance NBFC Unsecured NCDs from Bajaj Finance, India's largest retail-focused NBFC. Quarterly interest payouts. Highest domestic credit rating. | AAACRISIL | 8.3% p.a. | Quarterly | 3 years | Unsecured | 18 Mar 2027 | BAJFINANCE24 |
Tata Capital Financial Services Diversified NBFC Secured NCDs from the Tata Group's financial services arm. Offers housing, SME, and consumer loans. Backed by Tata Sons. | AAACRISIL | 8.15% p.a. | Annual | 5 years | Secured | 5 Feb 2029 | TATACAP24 |
HDFC Ltd (Legacy) Housing Finance Legacy secured NCDs issued by HDFC Ltd before its merger with HDFC Bank. Obligations transferred to HDFC Bank post-merger. Matures August 2026. | AAACRISIL | 7.85% p.a. | Annual | 4 years | Secured | 15 Aug 2026 | HDFC22NCD |
Sammaan Capital (IndiaBulls HF) Housing Finance Secured NCDs from Sammaan Capital (rebranded from IndiaBulls Housing Finance). Higher yield reflects elevated risk vs AAA issuers. Monthly income option. | AAICRA | 10.25% p.a. | Monthly | 3 years | Secured | 20 Sept 2026 | SAMMAAN23 |
Adani Ports & SEZ Infrastructure / Ports Unsecured NCDs from Adani Ports, India's largest private port operator. Long tenure offers higher yield. Revenue backed by port concession agreements. | AA+CARE | 8.9% p.a. | Annual | 5 years | Unsecured | 10 May 2029 | ADANIPORTS24 |
IIFL Finance Retail NBFC Secured NCDs from IIFL Finance offering gold loans, home loans, and microfinance. Higher yield than AAA peers reflects AA rating. | AACRISIL | 9.6% p.a. | Quarterly | 3 years | Secured | 1 Jul 2027 | IIFLFINANCE24 |
Piramal Capital & Housing Finance Housing Finance Secured NCDs from Piramal Capital, offering real estate and housing finance. Higher yield premium reflects the wholesale lending segment exposure. | AAICRA | 10% p.a. | Annual | 4 years | Secured | 15 Nov 2027 | PIRAMALCAP23 |
Showing 10 of 10 NCDs. Data is approximate and for informational purposes only. Coupon rates and ratings shown are as of the issue date — check latest rating from CRISIL / ICRA / CARE before investing.
How to Invest in NCDs
Primary Market (New Issue)
- 1. Watch for NCD public issue announcements (SEBI website, NSE, your broker)
- 2. Apply during the subscription window through your broker or bank ASAP platform
- 3. Minimum investment: ₹10,000 (10 bonds at ₹1,000 face value)
- 4. NCDs are allotted on a first-come-first-served or pro-rata basis
- 5. Listed on NSE/BSE within ~6 business days of issue closing
Secondary Market (Buy / Sell)
- 1. Search for the NCD's NSE/BSE symbol in your broker terminal
- 2. Place a limit order at your desired price (spreads can be wide — use limit, not market)
- 3. You can buy at a discount if market price is below face value (and vice versa)
- 4. Settlement is T+1. NCD lands in your demat account next day.
Understanding NCD Credit Ratings
Highest safety. Extremely low risk of default.
Very high safety. Very low default risk.
High safety. Low but non-negligible default risk.
Moderate-to-speculative. Higher yield, higher risk.
Ratings are assigned by SEBI-registered credit rating agencies: CRISIL (S&P), ICRA (Moody's), CARE, India Ratings (Fitch). A rating downgrade can cause the NCD's market price to fall significantly.
Disclaimer: Coupon rates, ratings, and maturity dates shown are approximate and based on publicly available data at time of issue. Always verify current ratings from CRISIL/ICRA/CARE before investing. NCDs are subject to credit risk, interest rate risk, and liquidity risk. This page is for informational purposes only and not investment advice. Consult a SEBI-registered investment advisor for personalized guidance.