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Who can apply in NCD Public Issue?


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A verity of investors is qualified to invest in the NCD public issue. NCD investors are categories into 3 major categories:

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

Similar to IPO's, NCD has a reserved portion for each investor category. The number of NCD's reserved under each category varies by the NCD.

Category 1 Investors (QIB)

The NCD Category 1 Investors are Qualified Institutional Investors (QIB). The detail list of these investors is as below:

  • Resident Public Financial Institutions
  • Statutory Corporations including State Industrial Development Corporations, Scheduled Commercial Banks,
  • Co-operative Banks and Regional Rural Banks
  • Provident Funds, Pension Funds, Superannuation Funds, and Gratuity Fund, which are authorized to invest in the NCDs;
  • Venture Capital funds and/or Alternative Investment Funds registered with SEBI;
  • Insurance Companies registered with the IRDA;
  • National Investment Fund
  • Insurance funds set up and managed by the Indian army, navy or the air force of the Union of India or by the Department of Posts, India;
  • Mutual Funds registered with SEBI; and
  • Systemically Important NBFCs.

Category 2 Investors (NII)

The NCD Category 2 Investors are Non-Institutional Investors (NII). The list of qualified NII is as below:

  • Bodies corporate and societies
  • Educational institutions
  • Trust including Public/private charitable/religious trusts
  • Association of Persons
  • Scientific and/or industrial research organizations
  • Partnership firms in the name of the partners;
  • Limited liability partnerships

Note: In some NCD's the category 2 and category 3 are combined to make category 2.

Category 3 Investors (HNI)

The NCD Category 3 investors are Resident Indian individuals (RII) and Hindu Undivided Families (HUF) through the Karta who apply for aggregated value exceeding Rs 5 lakhs (or Rs 10 lakhs in some NCD's).

Category 4 Investors (RII/HUF)

The NCD Category 4 investors are RII and HUF whose applications aggregating to a value, not more than Rs 5 lakhs (or Rs 10 lakhs in some NCD's).

Important Note

The definition of the category in an NCD public issue may differ by NCD to NCD. Please read the NCD IPO prospectus document before applying in an NCD to choose the correct category.



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