What is unlisted debenture

Was this article helpful? Have a query? ITR Resources. Mutual Fund Resources. Terms Privacy Legal. Download ClearTax Invest App. NCDs is either secured or unsecured depending on the principal amount and interest rate issued by the company offering debentures. FDs can be withdrawn before maturity with a small penalty applicable on an early withdrawal. However, premature withdrawals do not apply to all types of FDs. NCDs cannot be withdrawn before maturity.

Since NCDs are listed on the stock market they can be sold in the secondary market. Search Popup advanced search keywords. People subject to arrest warrants Persons of interest Upcoming hearings calendar Circulars Consultations and conclusions.

Home Regulatory functions Corporates Unlisted shares, debentures Unlisted shares, debentures. Premium Zika virus in Uttar Pradesh: Two positive cases reporte Premium Why Sensex fell over points today. Premium Why gold prices today have surged to 9-month high. Premium Chinese activity in east India raises alarm. Subscribe to Mint Newsletters. Internet Not Available. Wait for it… Log in to our website to save your bookmarks.

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Your Money. Personal Finance. Your Practice. Popular Courses. Bonds Fixed Income Essentials. Table of Contents Expand. What Is a Debenture? Understanding Debentures. Convertible vs. Pros and Cons. Debenture Risks to Investors.

Key Takeaways A debenture is a type of debt instrument that is not backed by any collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of the issuer. Some debentures can convert to equity shares while others cannot.

Pros A debenture pays a regular interest rate or coupon rate return to investors. Cons Fixed-rate debentures may have interest rate risk exposure in environments where the market interest rate is rising. Is a Debenture Different From a Bond? Are Debentures Risky Investments? How Are Debentures Structured? Article Sources. Investopedia requires writers to use primary sources to support their work.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.