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NCD Glossary - Definitions, Abbreviations, Terminology and Meaning

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NCD Definitions, Abbreviations, Meanings

S No Term Definition Feedback
1Basis of Allotment of NCDThe process by which applicants will be selected for allotting the NCDs is called the basis of allotment.0
2Coupon IncentiveThe extra coupon rate is offered in some NCDs for certain category of investors like senior citizens or retail investors etc.0
3Coupon RatesThe fixed rate of returns offered by the company for each series of the NCD.0
4Debenture TrusteeDebenture 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
5Deemed Date of AllotmentThe date set by the Board or the NCD Committee for allotment of the NCD.0
6Interest on RefundThe interest paid by the issuing company to an applicant who doesn't get NCD allotment.0
7Issue Size (Base) NCDThe base Issue size is the minimum size of an NCD issue specified by the issuer.0
8Issue Size (Shelf) NCDThe shelf issue size is the maximum size of an NCD in case of an over-subscription of the issue.0
9NCDNon-Convertible Debentures (NCDs) are fixed income instruments issued by corporations to raise money from the public.0
10NCD Public IssueThese NCDs are listed and are traded in stock exchanges.0
11NCD Record DateThe date by which investors must own the NCDs to be eligible for the payment of interest or repayment of principal.0
12NCD SeriesA NCD comes in multiple series with each series having different coupon rate, tenor, payment frequency etc.0
13Payment FrequencyIt is a frequency of interest payment to the investors.0
14Recovery expense fund (REF)REF is a fund created by the NCD issuer to manage the deposit of debt securities with the stock exchange.0
15TenorThe predetermined fixed period of time for each series of the NCD needs to be held by an investor before redemption.0
16Unsecured NCD IssueWith unsecured NCDs issue, investors cannot reclaim the amount if the company defaults.0