What is NCD in Muthoot Finance?

Advertisement. Recently, Muthoot Finance has made the announcement that it will raise nearly Rs 300 crore via the Public Issue of Secured Reedemable Non-Covertible Debentures (NCDs).

How safe is Muthoot Finance NCD?

The Secured NCDs, proposed to be issued, have been rated AA+ (Stable) by ICRA. The rating of the Secured NCDs by ICRA indicates “high degree of safety regarding timely servicing of financial obligations”.

What is the full name of Muthoot debentures?

Muthoot Finance Limited (MFL) is the largest gold loan NBFC in India in terms of loan portfolio and is a Systemically Important Non-Deposit Taking NBFC” (NBFC-ND-SI) headquartered in the south Indian state of Kerala.

What is the name of the register handling non-convertible debentures issue Muthoot Finance Limited?

MARKET LINKED DEBENTURES. Muthoot Finance Limited (“MFIN”) issued Rated, Secured, Redeemable, Non-Convertible Debentures which are Principal Protected and Market Linked (“PPMLDs”).

Can I sell NCD before maturity?

NCDs cannot be withdrawn before maturity. Since NCDs are listed on the stock market they can be sold in the secondary market.

What is NCD coupon rate?

Definition: Coupon rate is the rate of interest paid by bond issuers on the bond’s face value. It is the periodic rate of interest paid by bond issuers to its purchasers. The coupon rate is calculated on the bond’s face value (or par value), not on the issue price or market value.

How do I sell my Muthoot NCD?

Good way to diversify the investment portfolios.

1. Muthoot Finance NCDs are available through Secondary Market. Muthoot securities facilitateto Buy /Sell NCD’s through secondary market.
2. Contact to: 0484-4337583.
3. Email: [email protected].

Is Muthoot Mini NCD secured?

Muthoottu Mini Financiers Limited, which is involved in the gold loan business, has announced the issue of secured, redeemable, non-convertible debentures of the face value of ₹1,000 each at par, aggregating up to ₹250 crores.

How do I redeem NCD before maturity?

NCDs cannot be withdrawn before maturity. Since NCDs are listed on the stock market they can be sold in the secondary market. Bank FDs attract TDS if gains are beyond Rs. 10,000.

What happens to NCD after maturity?

Non-convertible debentures fall under the debt category. They cannot be converted into equity or stocks. NCDs have a fixed maturity date and the interest can be paid along with the principal amount either monthly, quarterly, or annually depending on the fixed tenure specified.

Is NCD safe investment?

Although NCDs are generally considered safe fixed-income instruments, some recent defaults have made investors cautious. NCDs can be either secured by the issuer company’s assets, or unsecured.

Are NCDs good investment?

NCDs from one single sector (NBFCS that focuses on personal loans) are not safe to invest in. This can lead to higher risk exposure. NCDs from the secondary markets have always delivered higher returns in the past.

Does NCD have lock in period?

Liquidity: NCDs are liquid since they are listed on the stock exchange. They might have a built-in clause that allows you a premature exit, i.e. a “PUT Option”. This option can be exercised after the lock-in period, which is usually greater than 90 days.

What is the best NCD rating?

At Budget Direct, the NCD is capped at 5 years. When you reach this ceiling, we’ll give you a maximum no-claim discount, also known as a Rating 1.

What is NCD investment?

Non-convertible debentures (NCD) are those which cannot be converted into shares or equities. NCD interest rates depend on the company issuing the NCD. NCD investment can be held by individuals, banking companies, primary dealers other corporate bodies registered or incorporated in India and unincorporated bodies.

What is face value of NCD?

Terms associated with Debentures or NCDs The face value (also known as the par value or principal) is the amount of money a holder will get back once a bond matures. A newly issued bond usually sells at the par value of Rs 1,000. Coupon (The Interest Rate) : is the amount the holder will receive as interest payments.

How do I withdraw my NCD?

The usual process is as follows:

1. Get an insurance quotation for your new car.
2. Inform your insurer that you would like to transfer the NCD from your old car to your new car.
3. Your insurer will then transfer the NCD to your new car.
4. Enjoy a lower insurance premium for your new car.

Is NCD safer than FD?

Corporate FDs are highly unsafe, whereas, bank FDs are insured up to Rs. 1 lakh. NCDs is either secured or unsecured depending on the principal amount and interest rate issued by the company offering debentures.