Experts say fund raising via NCDs has been less compared to the year-ago period as companies have preferred QIP route and rights issue for garnering money.

The NCD is offering a return of 11 per cent for a minimum tenure of 3 years, 11.25 per cent for 5 years and 11.50 per cent for 7 years, on its cumulative payout option.

If a public issue of debt securities such as Non Convertible Debentures (NCDs) fails to attain 75% subscription, the money that has been collected from the public will to be refunded within 12 days.

With interest rates stable and expectation that the interest rate will be on a lowering trajectory, it may be a good opportunity to lock-in on fixed income with higher interest rates.

In its zeal to prevent fraud, the new Companies Act has made normal corporate functioning near-impossible, feels industry. It's everyday operational issues that are raising anxiety levels of promoters, professional managers and their legal teams and auditors.

Market analysts believe that companies opted for debt route to raise fresh capital because of lack of options available on the equity side.

Market sources claim Life Insurance Corporation of India has made a sizeable investment in the company, subscribing to its Rs 10,000 crore privately placed debentures (PPD).

Kinetic Engineering Ltd (KEL) exited the two-wheeler segment completely by selling its remaining stake in Mahindra Two Wheelers to private equity firm Samena Capital for about Rs 182.1 crore.

Non-convertible debentures, or NCDs, are loan-linked bonds issued by a company that cannot be converted into stock and usually offer higher interest rate than that of convertible debentures.

Long-term investments can safely be put in equities. However, for periods less than two-three years, it's best to be safe and go for fixed income options. The latter, due to various factors that are keeping interest rates high, have turned especially attractive of late.

Four non-banking finance companies - Srei Infrastructure Finance Ltd, Shriram Transport Finance Company Ltd, Rural Electrification Corp and Muthoot Finance - have tapped the NCD route so far in 2013-14.

\"We are overwhelmed by record response with bids for Rs 1,154 crore to our Rs 525 crore NCD issue, particularly in the backdrop of such tight liquidity conditions and uncertain environment,\" India Infoline Group Chairman Nirmal Jain said.

The company has launched a public issue of secured redeemable NCDs aggregating up to Rs 525 crore, with an option to retain over-subscription up to Rs 525 crore, leading to a total of Rs 1,050 crore.

IIFL Chairman Mukesh Kumar Singh said the company will issue Secured Redeemable NCD with a printed value of Rs 1,000 crore on September 17 and the pubic issue will close on October 4.

Indian companies have mopped up nearly Rs 900 crore through retail issuance of non-convertible debentures (NCDs) in the ongoing financial year.

The non-banking financial company is offering up to 11.15 per cent per annum interest rates on its secured non-convertible debentures which is opening for purchase from July 16.

Trading in non-convertible redeemable preference shares and privately-placed redeemable preference shares, experts say, will give people one more liquid investment option.

Funds raised by Indian companies through retail issues of non-convertible debentures (NCDs) more than halved to nearly Rs 17,000 crore in 2012-13.

Srei Infrastructure Finance has sought the Securities and Exchange Board of India's (Sebi) approval to raise up to Rs 150 crore through issue of non-convertible debentures.

The bond issue would be for a period of 10-15 years offering an interest rate between 7.19 per cent and 7.86 per cent. The bonds are proposed to be listed on the BSE.