Non-convertible debentures are issued by the company so as to raise money from public. It is for a specific tenure where the company pays a fixed interest on the investment. NCDs cannot be converted into shares. On maturity, principal amount along with interest will be paid. Agencies such as CRISIL, ICRA, CARE and Fitch Ratings give ratings to the company that raise money through NCD.

NCD can be secured or unsecured. Secured NCDs are backed by the issuer company’s assets to fulfill the debt obligation.