Bonds & NCDs

Fixed income securities held directly, in demat form.

Bonds and non-convertible debentures are debt instruments issued by governments, public sector undertakings and companies. They pay interest at a stated coupon and repay principal at maturity, and are held in demat form.

Secondary market liquidity varies considerably across issues. Some trade actively while others are effectively held to maturity, which matters if funds may be needed before the maturity date.

Key features

• Government securities, state development loans and treasury bills
• Public sector and corporate bonds across rating categories
• Secured and unsecured non-convertible debentures
• Tax-free bonds where available in the secondary market
• Held in demat form; a demat account is required
• Interest and capital gains taxed as per prevailing rules