What are NCDs (Non-Convertible Debentures)?

NCDs are fixed-income debt instruments issued by companies with tenures of 2–10 years, offering higher interest rates than FDs (8–12%) with listed liquidity on stock exchanges. They carry credit risk — always check the CRISIL/ICRA rating (AAA = safest). They are taxable at slab rate; unlike bonds, they cannot be converted to equity.