NCD & Corporate bonds related FAQs

What are the dissimilarities between Unsecured and Secured NCD ?

Unsecured NCD vs. Secured

NCDs securedNCDs that are not secured
  • These loans are backed up by company assets
  • If the company defaults, assets of the company can be liquidated in order to repay investors
  • Lower returns than unsecure NCDs
  • Less risky than unprotected NCDs
  • These cannot be backed up by company assets
  • Investors cannot recover money via asset liquidation if they default
  • Secured NCDs offer higher returns
  • Secure NCDs are more risky than secure ones

 


How a person can apply in NCD Public Issue ?