Can a retail investor invest in Corporate NCDs?

General
1

Hello,

Can anyone please let me know, if a retail investor like me can invest in NCDs.

There’s a article in Today’s ET (10th May) on page 9. Excerpts from that article given below for reference purpose.

(The bonds score over fixed dei posits because they offer higher yields and are liquid as investors can buy or sell them on stock exchanges. Also, there is no tax deduction at source if they are held in the demat form.

Wealth managers suggest in vestors to buy bonds based on their requirements and liquidity .For example, with a three-year time frame, you may buy an NCD maturing in 2020. But if you are ready to wait for 8-10 years, you may buy bonds maturing in 20252027. Depending on your cash needs, you could opt for NCDs that offer monthly , half-yearly or yearly interest payment.

Some of the popular series of bonds in the secondary market are the 8.49% NTPC N7, the 9% Mahindra Financial Services NCD and the 9.3% Dewan Housing NCD. The NTPC bond maturing in March 2025 trades at 13, giving a yield of 7.9%, while the Mahindra NCD maturing in June 2026, trades at103.2, giving a yield of 8.41%. Similarly, the Dewan Housing NCD maturing in August 2026, trades at `100.95, giving a yield of 9.14%.)

2

Yes. You can invest.

3

Can i exit any time? is it like buying stock? if yes, they how the yields will become a payout to a investor if one exit before a year?

4

Does this investing in NCD’s is available on Zerodha or faclitated by banks on their INB portal?

5

Yes, you can. Check this post for more.

6

As per my knowledge, we can buy through our respective brokers

7

Thanks Bhuvanesh for the information.
What is the brokerage if one opts through zerodha and tax implications?