How a person can apply in NCD Public Issue ?

An extensive list of qualified investors can invest in the NCD public offering. There are three main categories of NCD investors:

1. Category 1 (QIB).
2. Category 2 (NII).
3. Category 3 (HNI).
4. Category 4 (RII).

Like IPO's and NCD's, each investor category has a portion of the NCD that is reserved. Each NCD has a different number of NCDs that it reserves for each investor category.

Category 1 Investors (QIB).

Investors in NCD Category 1 are Qualified Institutional Investors, (QIB). Below is a detailed list of these investors:

• Resident Financial Institutions
• Statutory Corporations include State Industrial Development Corporations and Scheduled Commercial Banks.
• Regional Rural Banks and Co-operative Banks
•  Superannuation and Gratuity Funds ,Provident Funds and Pension Funds , all are  allowed to invest in the NCDs.
• Register Venture Capital funds and/or Alternative Investment Funds with SEBI
• Register Insurance Companies with the IRDA
• National Investment Fund
• Insurance funds created and managed by the Indian navy, army, or air force of India, or by the Department of Posts, India.
• Mutual funds registered with SEBI
• NBFCs that are systemically important

Investors in Category 2 (NII).

The NCD Category 2 Investors, Non-Institutional Investors (NII), are the NCD Category 2. Below is a list of qualified NII:

• Societies and corporate bodies
• Education institutions
• Trust, including public/private charitable/religious trusts
• Association of Persons
• Research organizations for scientific and/or industrial purposes
• Partner firms are named after the partners
• Limited liability partnerships

Notice: In some NCDs, category 2 and 3 are combined to create category 2.

Category 3 Investors (HNI).

Investors in NCD Category 3 are Resident Indian Individuals (RII) or Hindu Undivided Familiess (HUF), who apply for an aggregate value exceeding Rs 5 Lakhs (or Rs 10 Lakhs in some NCDs).

Investors in Category 4 (RII/HUF).

Investors in NCD Category 4 are RII or HUF whose applications aggregate to a value not exceeding Rs 5 lakhs (or even Rs 10 lakhs in certain NCD's).

Important Note

The The definition of the category may vary from NCD to NCD in a NCD public issue . To choose the right category, please read the NCD IPO prospectus before you apply.