NCD on WebNotes

DHFL default impact on credit-risk funds

Tue, 12 May 2026 00:00:00 +0000

The DHFL default and its impact on credit-risk mutual funds unfolded through 2019 and 2020 as Dewan Housing Finance Corporation Limited (DHFL), at its peak India’s third-largest private housing finance company, progressively ceased to service its market borrowings, ultimately triggering the first use of the Insolvency and Bankruptcy Code (IBC) against a financial services entity. For Indian credit-risk funds and other debt mutual fund schemes that held DHFL’s non-convertible debentures (NCDs) and commercial paper, the episode produced significant NAV write-downs, accelerated redemptions, and reinforced the market’s already-heightened post-IL&FS scepticism about the creditworthiness of non-bank lenders. The episode also produced SEBI’s first large-scale enforcement exercise around credit risk classification and side-pocket usage.

How to buy a bond on Zerodha

Tue, 12 May 2026 00:00:00 +0000

This guide explains how to buy listed bonds and Non-Convertible Debentures (NCDs) through Zerodha’s Kite platform. The process covers the exchange-traded secondary market for bonds listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). For primary NCD applications during new issue windows, investors must follow a separate process through the electronic book mechanism on NSE or BSE; that process is not covered here. For information on buying Government Securities or T-Bills, see the dedicated guides.

Bonds on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Zerodha provides access to listed bonds and Non-Convertible Debentures (NCDs) through the debt segment of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Investors can buy and sell these instruments through Kite in the same manner as equity shares, with settlement occurring in the demat account. This segment is distinct from Government Securities (G-Secs) and T-Bills, which trade through a separate RBI-managed mechanism.

Types of bonds accessible on Zerodha

Non-Convertible Debentures (NCDs)

NCDs are debt instruments issued by corporations that cannot be converted into equity shares. Listed NCDs trade on BSE and NSE’s debt segment. Examples include NCDs issued by Muthoot Finance, Shriram Transport Finance, Tata Capital, and government-backed entities such as NHAI and IRFC.