How to invest in NCDs?

NCDs can be bought in the primary market as a part of a public issue or they can be bought and sold in the Secondary Market.

In the first case, an individual has to apply for an Initial Public Offer by filling out an online form or via the Application Supported by Blocked Amount (ASBA) route. The method blocks the application amount in your bank account and it keeps earning interest, once allotment is finalized and you have been allotted with NCDs then only the amount will get debited from your bank account, and the NCD will be transferred into your Demat account.

In the case of the secondary market, an investor can purchase and sell NCDs online from the stock exchange through your Demat account.