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.