What are NCDs? Non-convertible debentures (NCDs) are debt instruments with a fixed tenure issued by companies to raise money for business purposes. Unlike convertible debentures, NCDs can't be converted into equity shares of the issuing company at a future date. What's the difference between NCDs & FDs? Following are the differences between an NCD and an FD: Liquidity: In contrast to a NCD, FD can't be sold in the market. As NCDs are listed on a stock exchange, you can sell them any time you want. Even bank FDs are highly liquid and can be encashed before maturity however with lesser interest. Safety: While NCDs are secured debt, corporate FDs are altogether unsecured and bank FDs are secured to the extent of Rs One Lakh only, for both principal and interest amount for each depositor in a bank. Taxation: There is difference in taxation aspect also. In addition to interest income, there can be capital gains if you sell the NCD before maturity. However...
Sebi tightens P-note rule to curb black
Moneycontrol Bureau
With FII inflows through the participatory note (P-note) route hitting an 80-month high of Rs 2.65 lakh crore in October, Sebi has tightened rules relating to issuance of P-notes, also known as offshore derivative instruments. It is widely suspected P-notes are a conduit for bringing black money parked abroad, back into India.
P-notes are offshore derivative instruments issued by Sebi-registered FIIs to overseas investors who do want to register with Sebi for reasons legitimate or devious. The registered FII buys shares/derivatives on behalf of the unregistered players, and issues P-notes (a receipt of sorts) since the ownership of those shares/derivatives cannot be transferred to the unregistered players
Under the new rules, a Sebi-registered foreign portfolio investor (FPI) can now issue P-notes only to those entities based in countries where the securities regulator and central bank are members of globally reco...
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