Who can issue NCD in India?

NCDs are issued by corporates in order to raise required capital. However, there are certain eligibility criteria or requirements for a company to issue NCD including the following:

The company’s net worth shall not be less than Rs 4 crore in the last audited balance sheet.
The issuer company has been sanctioned a term loan or working capital limit by a bank.
The bank has classified the borrower’s account as a standard asset.
Company must have a credit rating by any credit rating agency like ICRA, CRISIL, CARE Ratings, etc.

Answered on 2023-12-13

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