# Where to buy/sell Equity Linked Notes in India?
**URL:** https://tradingqna.com/t/where-to-buy-sell-equity-linked-notes-in-india/153622
**Category:** Bonds
**Created:** [September 22, 2023, 10:27am UTC](https://tradingqna.com/t/where-to-buy-sell-equity-linked-notes-in-india/153622 "2023-09-22T10:27:03Z")
**Posts on this page:** 6
**Page:** 1
### Author:  [@ChillarAnand](https://tradingqna.com/u/ChillarAnand)
#### Post date: [September 22, 2023, 10:27am UTC](https://tradingqna.com/t/where-to-buy-sell-equity-linked-notes-in-india/153622/1 "2023-09-22T10:27:03Z")
I recently came across ELN(Equity Linked Notes) and I am searching to find ELNs that are pegged to NIFTY 50.
Are there any institutions that provide these ELNs?
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### Author:  [@cvs](https://tradingqna.com/u/cvs)
#### Post date: [September 22, 2023, 1:07pm UTC](https://tradingqna.com/t/where-to-buy-sell-equity-linked-notes-in-india/153622/2 "2023-09-22T13:07:28Z")
What specific aspects of ELNs are you looking to achieve by purchasing them (and on which which equities) ?
_(i believe [various aspects of ELNs](https://en.wikipedia.org/wiki/Equity-linked_note) can be manually achieved
by a combination of investing in a liquid fund, purchasing stocks, and purchasing options.)_
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### Author:  [@Akash\_Shah](https://tradingqna.com/u/Akash_Shah)
#### Post date: [September 22, 2023, 1:29pm UTC](https://tradingqna.com/t/where-to-buy-sell-equity-linked-notes-in-india/153622/3 "2023-09-22T13:29:55Z")
In India, term used is MLD, market Linked debentures.
This was a rage some time back as these bonds were giving debt like returns with equity like taxation. Mainly these were for HNI, but some platforms like wintwealth started this for Retail too
However, 2023 budget removed the tax advantage this product had, and after that I think market has dried down.
Capitalmind had a great explainer on this
> **[How Market Linked Debentures (MLDs) Work - Capitalmind](https://premium.capitalmind.in/2021/09/how-market-linked-debentures-mlds-work/)**
>
> Imagine that a bank told you their fixed deposits will pay based on the weather. If it's sunny on your maturity date, you get 8%. If it's cloudy, you get 6%. You're going to bet on the weather for a different return. Effectively, that's what a Market...
> [@ChillarAnand](#):
>
> I am searching to find ELNs that are pegged to NIFTY 50.
I am not sure what exactly you are looking for, but such products are not pegged to an index. It is just an arbitrary level something like, you will get 8% per year return if nifty 50 remains above 15,000 level but if goes below 15K, you only get your principal back.
There is no pegging. If you want a pegged product, Nifty 50 etf or index fund is right choice.
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### Author:  [@ChillarAnand](https://tradingqna.com/u/ChillarAnand)
#### Post date: [September 24, 2023, 1:17pm UTC](https://tradingqna.com/t/where-to-buy-sell-equity-linked-notes-in-india/153622/4 "2023-09-24T13:17:47Z")
I don’t know how it can be achieved with liquid funds, stocks & options.
AFAIK, ELN are principle-protected and have varying interests.
For example, if we invest 1,00,000 (in NIFTY 50 linked note) in ELN for 1 year. At the end of the year, you will get 1,00,000 for sure. In addition to that, you will get % of returns based on NIFTY. If nifty gains 5%, we will get 5% of the principal invested.
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### Author:  [@cvs](https://tradingqna.com/u/cvs)
#### Post date: [September 25, 2023, 9:16am UTC](https://tradingqna.com/t/where-to-buy-sell-equity-linked-notes-in-india/153622/5 "2023-09-25T09:16:14Z")
> [@ChillarAnand](#):
>
> I don’t know how it can be achieved with liquid funds, stocks & options.
But, based on my [understanding of ELNs](https://en.wikipedia.org/wiki/Equity-linked_note) and Options,
The approach is something like this…
Say one has 100 INR today
- From that, one uses **INR 5**
- From that, one uses **INR 95**
NOTE: Above example uses single-digit INR for simplicity.
The minimal amount required to setup a properly balanced sceanrio above,
will be determined by the lot sizes of the NIFTY call-option (50 units).
A similar approach / financial instrument was discussed in **[this thread](https://tradingqna.com/t/a-strategy-etf-where-you-cant-lose-money/151143)**.
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### Author:  [@ChillarAnand](https://tradingqna.com/u/ChillarAnand)
#### Post date: [September 27, 2023, 2:58am UTC](https://tradingqna.com/t/where-to-buy-sell-equity-linked-notes-in-india/153622/6 "2023-09-27T02:58:14Z")
Looks like there are various types of ELNs.
I am looking for PGN(Principal Guaranteed Note) ELN.
> **[Equity-linked note](https://en.wikipedia.org/wiki/Equity-linked_note)**
>
> An equity-linked note (ELN) is a debt instrument, usually a bond issued by a financial institution such as an investment bank or a subsidiary of a commercial bank. ELNs are liabilities of the issuer, but the final payout to the investor is based on an unrelated company's stock price, a stock index or a group of stocks or stock indices. The underlying stocks typically have large market capitalizations. Equity-linked notes are a type of structured product and are often marketed to unsophisticated r...