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

@TeamQuicko @Divya_Singhvi

Any help regarding the question please?

Hey @FalconZex

Listed NCDs bought from secondary market will be transferred to your demat account on market value/buy value. The pricing mechanism will also remain same if you sold the holdings on or before the maturity.

Additionally, interest payout duration, rate of interest, face value of bond etc. are vary in bond markets. These terms can be verified from the respective bond offer document.

Further, there may not any specification in full form, it depends from bond to bond.

For example, Bond detail: Sec Red NCD 9.10% Sr. III.

Here, the full form may be referred as:
Sec Red - Secured Redeemable
NCD - Non-convertible debentures
9.10 % - Interest coupon Rate (%)
Sr. III - Series number

Here, you can read below article for bond taxation as well for more insights:

I hope, it helps!

1 Like

@Kaushal_Soni thanks for the information. Could you please tell me what does ‘whether guaranteed or partially guaranteed’ means? It’s written in bond info page.