Hello Zerodha Staff,
Let’s say I decide to apply for NCD issue via ASBA.
For instance, this one - https://www.hdfcsec.com/shriram-transport-finance-company-limited-ncd (OR any NCD via primary market using ASBA).
Post allotment - I will be holding NCD units in Demat format as like any stocks. If you look at NCD - it offers Interest/maturity Payments in modes like - monthly, yearly or at Maturity.
Where will I get the Interest or maturity amount? In my bank account (which is linked Demat)
OR in my trading account (I then need to transfer it back to my bank).
I believe the same question can be raised about Gsec/Bonds etc which can be held in Dmat format. Assume I am ready to hold it till maturity.