Description

Bonds & NCDs: Investing for Stable Returns Build a predictable income stream with fixed-income instruments. Investing in bonds and Non-Convertible Debentures (NCDs) with Tre Sessanta offers a smart way to generate steady returns and diversify your portfolio. These fixed-income securities provide a reliable income stream and are generally considered less volatile than equities. We connect you with a wide range of corporate and government bonds to help you create a stable financial foundation. How Bonds & NCDs Help You Bonds and NCDs are essentially loans you provide to a company or government entity. In return, they pay you a fixed interest (coupon) over a set period and repay the principal amount upon maturity. Key benefits include:  Predictable Returns: Enjoy a fixed interest rate, providing a stable and reliable income.  Capital Protection: The principal amount is returned to you upon maturity, offering a high degree of safety.  Portfolio Diversification: Balance your equity investments with fixed-income assets to reduce overall portfolio volatility.  Better than FDs: Certain Bonds and NCDs may offer higher returns compared to traditional fixed deposits.  Liquidity: Many bonds and NCDs are traded on stock exchanges, providing you with the option to sell them  before maturity. Understanding Credit Ratings Credit ratings are a crucial tool for evaluating the risk of bonds and NCDs. They represent an assessment of the issuer's ability to repay the debt, ranging from low risk to high risk. Here’s a simple breakdown of the ratings:  AAA (Triple-A): This is the highest credit rating, indicating the highest level of safety and a very low risk of default. It signifies that the issuer has an exceptionally strong capacity to meet its financial obligations.  AA (Double-A): This rating denotes a very high level of safety and a low risk of default. The issuer's capacity to repay is strong, but slightly more susceptible to economic changes than a triple-A-rated issuer.  A (Single-A): This rating is considered safe, but with a slightly higher risk than AA. The issuer's ability to meet its financial commitments is strong, but they may be more vulnerable to adverse business or economic conditions.  BBB (Triple-B): This rating is the lowest in the investment-grade category. It indicates that the issuer has an adequate capacity to repay, but adverse economic conditions could impair this capacity.  BB, B, C, and D: These ratings are considered “non-investment grade” or “junk bonds,” carrying a higher risk of default. Investing in these bonds is speculative and is best suited for investors with a high-risk appetite. Eligibility and Documents Required Investing in bonds and NCDs requires a Demat account and a simple documentation process. Eligibility Criteria  Identification: You must have a valid PAN and Aadhaar card.  Bank Account: A bank account in your name is mandatory for all transactions. Basic Documents Required  Proof of Identity (POI): PAN Card (mandatory).  Proof of Address (POA): Aadhaar Card, Passport, or Voter ID.  Proof of Bank Account: A cancelled cheque or the first page of your bank passbook.  Demat Account: A valid Demat account is essential to hold the bonds and NCDs. FAQs a. What is a bond? • A bond is a fixed-income instrument representing a loan made by an investor to a borrower (typically a government or a large company).The borrower uses the funds for a specific period and pays back the principal amount along with fixed interest payments. b. What is an NCD? • An NCD, or Non-Convertible Debenture, is a type of bond issued by a company that cannot be converted into equity shares. It is a popular fixed-income instrument for investors seeking a predictable and steady return. c. What is a coupon rate? • The coupon rate is the fixed interest rate paid by the bond issuer to the bondholder over the tenure of the bond. It is expressed as a percentage of the bond's face value. d. What is the role of Tre Sessanta? • We act as a facilitator, providing you with an access to the platform offered by our partners to invest in a wide range of bonds and NCDs and assisting you with the documentation and transaction process. Important Information  All information provided on this website is intended solely for educational purposes.  Tre Sessanta Financial Services Pvt. Ltd. assumes no responsibility for the legality, accuracy, or completeness of such content.  The information provided on this site is for general awareness and does not constitute advice or recommendation.  It is worth to note that Tre Sessanta Financial Services Pvt. Ltd. does not offer these services directly but facilitates access to them.  The terms and conditions of all investments are subject to the terms and conditions mentioned by the policies of Choice Equity Broking Private Limited & clients are advised to refer to the final legal documents before opening an account or making any investment decisions. Statutory Disclaimer: “Investments in the securities market are subject to market risks. Past performance is not indicative of future returns. Read all scheme-related documents carefully before investing.” Statutory Disclaimer for Bonds & NCDs “Investment in bonds and non-convertible debentures (NCDs) is subject to various risks including credit risk, interest rate risk, liquidity risk, and market risk. Investors are advised to read all offer documents, term sheets, and disclosures carefully before investing.” Additional Disclosures • The information provided herein is for general awareness and does not constitute investment advice or a recommendation to invest in any specific bond or NCD. • Bonds and NCDs are debt instruments and may carry risks such as: o Credit Risk: Possibility of default by the issuer in payment of interest or principal. o Interest Rate Risk: Fluctuations in interest rates may affect the market value of the instrument. o Liquidity Risk: Limited secondary market availability may affect the ability to exit before maturity. o Market Risk: Price volatility due to macroeconomic factors or issuer-specific developments. • The current interest rate offered should not be assumed to remain constant throughout the tenure. Rates are subject to change based on RBI directives and market conditions. • Tre Sessanta Financial Services Pvt. Ltd. acts solely as a distributor or facilitator and does not guarantee returns, principal protection, or issuer performance. • Investors must assess their financial goals, risk tolerance, and investment horizon before investing and are strongly advised to consult with a certified financial advisor or tax consultant. Important Notice to Investors  Investment Risk Disclosure Bonds and NCDs carry market, credit, and liquidity risks. Tre Sessanta does not guarantee returns or repayment of principal. Investors must assess the risk profile of each instrument before investing.  Issuer Responsibility All instruments listed are issued by third-party entities. Tre Sessanta is a facilitator and does not underwrite or endorse any issuer’s financial position or creditworthiness.  Taxation & Compliance Interest income and capital gains from bonds/NCDs are taxable under Indian law. Investors are responsible for complying with applicable tax regulations and filing requirements.  No Advisory Role Tre Sessanta does not provide investment advice or portfolio recommendations. All decisions are made solely by the investor, and professional financial consultation is advised.  Demat Requirement Investments in listed NCDs require a valid demat account. Tre Sessanta does not support physical applications for listed instruments.  Regulatory Adherence All transactions are governed by SEBI, RBI, and FEMA guidelines. Investors confirm their eligibility to invest under prevailing laws.  Tre Sessanta does not underwrite, issue, or manage any bond or NCD product. Our role is limited to facilitation and documentation support.  Due Diligence Investors must read offer documents, term sheets, and disclosures carefully. Tre Sessanta is not liable for any loss arising from reliance on incomplete or inaccurate information.  Platform Limitation Tresessanta acts solely as a facilitator. It does not assume responsibility for delays, defaults, or disputes between investors and issuers. Ready to start trading? Open Demat Account for Free | [QR Code]