Investing in Non-Convertible Debentures (NCDs) can be done through various methods, not just during the Initial Public Offering (IPO) phase. Here are some ways to invest in NCDs:

Primary Market – During IPO: NCDs are typically issued in the primary market through an Initial Public Offering (IPO). During the IPO phase, investors can subscribe to the NCDs by filling out the application form, providing the necessary details and making the payment as per the terms of the issue. Once the NCDs are allotted, they are listed on the stock exchange, and investors can trade them in the secondary market.

Secondary Market – After IPO: After the NCDs are listed on the stock exchange, investors can buy and sell them in the secondary market, similar to stocks. Investors can trade NCDs through their brokerage accounts or online trading platforms, just like they would trade stocks or other securities.

Private Placements: NCDs can also be issued through private placements, where they are offered to a select group of investors. Private placements may have different terms and conditions compared to public issuances, and investors need to carefully evaluate the risks and returns associated with such investments.

Debenture Trustees: Debenture trustees are appointed by the issuer of the NCDs to safeguard the interests of debenture holders. Investors can approach the debenture trustees to obtain information about the NCDs, including the terms of the issue, payment schedule, and other relevant details.

Demat Account: NCDs are typically issued in dematerialized form, which means they are held in a demat account. Investors need to have a demat account with a registered depository participant (DP) to invest in NCDs. The NCDs will be credited to the demat account upon allotment or purchase, and investors can track their investments and receive interest payments electronically.

Research and Due Diligence: Before investing in NCDs, it’s crucial to research and evaluate the issuer’s creditworthiness, financials, and other relevant factors. Investors should carefully review the terms and conditions of the NCD issue, including interest rates, maturity period, redemption options, and other relevant details. It’s advisable to seek professional advice and do thorough due diligence to make informed investment decisions.

Risk Assessment: NCDs carry risks, including credit risk, interest rate risk, liquidity risk, and market risk. Investors should carefully assess the risks associated with NCDs and consider their risk tolerance before investing. Diversification of investments across different issuers and types of securities can help mitigate risks.

In conclusion, investing in NCDs can be done not only during the IPO but also in the secondary market or through private placements. It’s essential to conduct thorough research, assess risks, and seek professional advice before investing in NCDs or any other financial instrument.