NCD

                                  NCD (Non Convertible Debenture) is a fixed income investment in which an investor loans money to an entity (typically corporate or government, which borrows the funds for a defined period of time at a variable or fixed interest rate.

 There are two types of NCDs: 

(1) Primary market NCD

Primary Market is a part of the capital market that deals with issuing of new securities. In a primary market, companies, governments or public sector institutions can raise funds through NCDs issues and corporations can raise capital through the sale of new stock through an initial public offering (IPO).

(2) Secondary market NCD

Secondary market is the market where previously issued securities, such as stocks and bonds, are traded among investors. It is also the market where investors buy securities from other investors, and not from the issuing organization. The sale proceeds from the secondary market go to the investor, and not the issuing company.