Can I apply for NCDs online? Yes, you can buy NCD IPOs online in the primary market through UPI or ASBA net banking. NCD IPO is the new issue of bonds. A company can offer NCD public issues multiple times in tranches. The application process for NCD IPO is very similar to IPO apply process but most stock brokers do not offer NCD IPOs. Instead, invest in bonds online through UPI with stock exchange or other platforms (GoldenPi or IndiaBonds) using your demat account details.
However, you can also buy and sell listed bonds in the secondary market through your stock brokers or the bond platform providers.
Should you invest in NCDs?
Are NCDs attractive? Non-convertible debentures (NCDs) are fixed-income offering debt instruments issued by a company for a specific period of time. As they offer a fixed interest income and a higher yield, NCDs can be an attractive option for moderate-risk individuals looking for alternatives to bank FDs.
Investments in NCDs can offer inflation-beating returns of 8% to 9% per annum. Interest payments can be made at regular intervals, such as monthly or annually, or cumulative interest can be paid at maturity.
Now, there are two questions: How can you invest in an NCD IPO or debt IPO online, and how can you invest in listed bonds? Let us discuss both in detail.
Online NCD IPO investment with the stock exchange
Both the BSE and NSE stock exchanges have their own platform BSEDirect and NSEgoBid to invest in bonds and government securities online. Any retail investor can apply for NCDs online through the UPI payment mechanism.
As per SEBI regulations, the maximum NCD investment through UPI is limited to Rs 5 lakh.
To invest in NCD issues through any of the platforms, you need to register first. Simply enter your PAN card number, name, date of birth as per PAN and DP ID details. The system will automatically fetch your details. It may take up to 1 day for your details to be verified.
Once you are successfully registered, you can place bids for bond issues by using UPI as the payment method and the bid details will be recorded by the exchange.
You can buy bonds or NCDs online through the web or app-based platform of BSEDirect and NSEgoBid.
NCD IPO online application with Broker
Most stock brokers do not offer NCD IPO investments, but only a few brokers accept NCD public issues applications. Angel One, 5paisa, Nuvama wealth (formerly Edelweiss) and bank-based full-service stock brokers like ICICI Direct, SBI Securities, HDFC Securities etc. allow investment in NCD IPOs.
Steps to apply for NCD IPO online through broker
- Log in to your trading account.
- Search for the debt IPO, bonds, NCDs, or primary market option.
- Choose the desired NCD among active bond issues.
- Tap on Apply or invest now
- Select the desired NCD series.
- Fill in the required details i.e., quantity of NCD or amount.
- Select UPI as a payment method and enter UPI ID.
- Submit the order and authorize the payment mandate on the UPI app.
Note: You need a trading and demat account with your broker to bid for NCD IPOs. However, Nuvama Wealth allows you to bid for NCD IPOs as a guest without having a demat account.
Steps to apply in NCD IPO with Nuvama;
- Go to Nuvama’s website.
- Go to NCD option.
- Tap on Apply now option respective to your choice of NCD.
- Personal details: Enter PAN number, name, email ID, mobile number, and verify it with OTP
- Demat details: Provide your Depository name (CDSL/NSDL), beneficiary ID, and tap on save.
- Select NCD series: Select series for NCD investment and investor type.
- Payment details: Enter UPI app/handle and your UPI ID.
- Tap to proceed
- Accept the mandate to authorize the payment, and it’s done!
NCD IPO Apply Online with ASBA
Invest in NCD issues online through ASBA Netbanking with self-certified syndicate banks, provided your bank allows investments in NCDs.
Invest in NCDs online with net banking ASBA;
- Log in to the net banking account.
- Visit the Investments
- Look for the debentures or NCD or bonds.
- Here, a list of current, open or active NCDs will be displayed.
- Select the NCD, you want to apply for.
- Enter required details such as NCD quantity, etc.
- Submit the application.
- The order will be sent to the exchange and the amount will be blocked in your bank account.
Note: Your bank may or may not offer NCD issues, do check with your bank first to buy NCDs.
Apply for NCD IPO online with Golden Pi
GoldenPi is India’s first platform to invest online in bonds or NCD IPOs. GoldenPi is a SEBI-registered debt broker that allows you to invest in bonds, debentures and other fixed income products online.
If you have a demat account with any brokers like Zerodha, Axis Securities, 5paisa or any other broker, you can apply for NCD IPO issues online through UPI in a few steps.
You can buy both NCD IPOs and listed bonds with GoldenPi
Step by step process to apply in NCDs online with GoldenPi
- Go to the GoldenPi official website.
- Tap on Collections, and click on Best Ongoing NCD IPOs.
- A list of NCD IPOs will be displayed along with their credit rating, tenure, and yield.
- Select your choice of NCD IPO and click on Apply IPO option.
- Enter your email, mobile number and OTP to verify.
- Provide your PAN number, name, and DOB as per PAN card.
- Your details will be automatically fetched,
- Specify you as an investor type i.e., Resident Indian or NRI.
- Select NCD series and enter number of NCD units (minimum 10 units worth Rs 10,000). You can invest in multiple series also.
- Tap on continue.
- Enter your demat account details including DP ID (CDSL or NSDL), DP ID number, and 8 digit client ID number.
- Enter your virtual UPI ID and hit apply IPO.
- Approve the UPI mandate within 48 hours on your UPI app. If in case, you do not receive the mandate with 48 hours, cancel your application and apply again.
- You will receive the allotment of NCD IPO in your Zerodha Demat account.
Invest in NCD Bond online with Indiabonds
IndiaBonds is a SEBI licensed online bond platform provider where you can buy new bond issues, listed bonds, SGBs and government securities.
IndiaBonds NCD IPO apply process;
- Go to the IndiaBonds website.
- Under the Products tab, go to Public Issue.
- A list of current, forthcoming, and closed NCD issues will be displayed.
- Click on Apply now option respective to the NCD you want to apply in.
- Sign-up: Enter personal details i.e., name, mobile number, email, password, age, and complete OTP verification to sign up.
- Select investor type Individual/HUF or Non-Individual, and category as Retail or HNI (Individual) or QIB or corporate (Non-individual).
- Tap on continue to proceed.
- Select series of NCD, and NCD quantity subject to minimum investment of Rs 10,000.
- Click on Invest option.
- Add PAN details, personal details, Depository details, and UPI payment address.
- Recheck and submit the details.
- Accept the mandate on your UPI app.
- You have successfully placed NCD apply order.
- Once the allotment is done and if you get the allotment, NCD units will be credited to the provided demat account otherwise funds will be released back.
Note: You can also invest in already listed bonds including state guaranteed bonds, bank bonds, PSU bonds, G-sec, tax-free bonds, and monthly income bonds.
Invest in NCDs or bonds in the secondary market with stock broker
If you have not received an allotment for the NCD IPO, you can buy NCDs in the secondary market. You can buy and sell listed NCDs online from any stock broker. Yes, once NCDs are listed, they are traded on the stock exchange like shares. So you can trade or invest in listed bonds with your broker like Zerodha.
Steps to buy and sell listed NCDs with broker;
- Log in to your trading account on the broker’s platform.
- Search the desired bonds using symbol. NCDs are listed as N series i.e., NA to NZ or N1 to N9.
- Tap on Buy/sell option.
- Enter quantity and price, and place the order.
Zerodha does not offer NCD IPOs, but if you have a demat account with Zerodha, you can apply for public NCD issuances online through GoldenPi or other platforms.
When you receive the NCD allotment, it will be credited to your Zerodha demat account. You can hold it till maturity or have an option to sell them before maturity on exchange.
How to invest in NCDs with Zerodha?
NCD IPO apply offline
If you face difficulties while applying for NCDs online, you can also buy bonds offline. Here is the process on how you can invest in NCDs offline:
