NCD Glossary - Definitions, Abbreviations, Terminology and Meaning

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  • 0 Feedbacks 1. Basis of Allotment of NCD

    The process by which applicants will be selected for allotting the NCDs is called the basis of allotment.

  • 0 Feedbacks 2. Coupon Incentive

    The extra coupon rate is offered in some NCDs for certain category of investors like senior citizens or retail investors etc.

  • 0 Feedbacks 3. Coupon Rates

    The fixed rate of returns offered by the company for each series of the NCD.

  • 0 Feedbacks 4. Debenture Trustee

    Debenture Trustee is a liaison between the issuer company and the debenture holders, who hold the secured property on behalf of the issuer company, which is mortgaged in favor of debenture trustee for protecting the interest of debenture holders.

  • 0 Feedbacks 5. Deemed Date of Allotment

    The date set by the Board or the NCD Committee for allotment of the NCD.

  • 0 Feedbacks 6. Interest on Refund

    The interest paid by the issuing company to an applicant who doesn't get NCD allotment.

  • 0 Feedbacks 7. Issue Size (Base)

    The base Issue size is the minimum size of an NCD issue specified by the issuer.

  • 0 Feedbacks 8. Issue Size (Shelf)

    The shelf issue size is the maximum size of an NCD in case of an over-subscription of the issue.

  • 0 Feedbacks 9. NCD

    Non-Convertible Debentures (NCDs) are fixed income instruments issued by corporations to raise money from the public.

  • 0 Feedbacks 10. NCD Public Issue

    These NCDs are listed and are traded in stock exchanges.

  • 0 Feedbacks 11. NCD Record Date

    The date by which investors must own the NCDs to be eligible for the payment of interest or repayment of principal.

  • 0 Feedbacks 12. NCD Series

    A NCD comes in multiple series with each series having different coupon rate, tenor, payment frequency etc.

  • 0 Feedbacks 13. Payment Frequency

    It is a frequency of interest payment to the investors.

  • 0 Feedbacks 14. Tenor

    The predetermined fixed period of time for each series of the NCD needs to be held by an investor before redemption.

  • 0 Feedbacks 15. Unsecured NCD Issue

    With unsecured NCDs issue, investors cannot reclaim the amount if the company defaults.