NCD buy/sell related

Hi, if I purchase a NCD from secondary market at 1100 when its face value is 1000 and hold it till maturity then when the units are debited from the demat account they’ll be sold for the face value of 1000 or the value I bought them at?(1100)
Also, after purchasing how can I select the interest payout interval ?

Can some1 please tell the full form of these ?

Sec Red NCD 9.10% Sr. III



Sec Red NCD

@neha1101 @Prayag

if the original face value of the NCD is 1,000 but it is available in the secondary market at 1,100 with a coupon or interest rate of 9.10%.

If you buy, your purchase cost will be 1,100 and if you hold till maturity you will get only the face value of 1,000.

The reason why this NCD is selling at 1,100 in the secondary market is because of the interest rate of 9.10%. In the market, bank FD and other instruments are lower than this and hence the secondary value of the NCD will rise.

After you buy, if the market interest rate goes up to 12% like Bank FD etc, then obviously your NCD value will fall. This is the risk you take.

If you hold till maturity, then you get 1,000 and interest rate of 9.10% on 1,000.

1 Like

Thanks for the info :slight_smile:

A few questions still left.

Sec Red NCD 9.10% Sr. III



Sec Red NCD

What are their full forms? Sec Red means secured?

Also, how can I set the interest payout interval after buying the ncd or how can I set it to be cumulative or non cumulative? Or are these settings pre set? If pre set where can I check the info?

Also! Where can I check which companies are offering NCDs?

Help any1!

Sec - Secured
Red - Redeemable
Sr. III & S-III - Series III
PA - Per Annum (likely related to interest payout)
SRN - Senior (or maybe Subordinate)

Also refer to - Bond Glossary - GoldenPi | Blogs

Interest Payout interval for bonds is preset. Using bond’s ISIN, you can find information on interest payout schedule on the NSDL website or CDSL website.

The advance search feature on NSDL and CDSL website allow one to filter/sort bonds being offered by various companies on different parameters. Also, website’s like GoldenPi and IndiaBonds curate list of bonds/NCDs available out there. Also, you can check recently listed NCDs on Edelweiss website.