FREE Account Opening + No Clearing Fees

What is the difference between NCDs and Bonds?


Open an Instant Account with Zerodha

NCDs and Bonds, both are fixed income instruments. However, there are a few differences between NCD and Bonds like-

  • NCDs are issued by public companies, whereas bonds are issued by government entities, large companies, and financial institutions to raise capital for the business purpose.
  • Bonds are generally secured, whereas NCDs can be secured and unsecured.
  • At the time of liquidation, priority to repay the debt is given first to bondholder and second to debenture holders.


Add a public comment...