JM Financial NCD @10.25% Interest rate

After FD/RD there is one more way to park some liquid money but that comes with some kind of risk because these NCD ( Non-Convertable Debenture)  are from private companies not from Government.

Overall people wait for Tax-free government bonds but these days there is no Tax-free bonds so one can park some of their money in these NCD’s.

These NCD comes with some lock-in period, but this depends on one person’s holding capacity, below you can check all terms.

Details

• NCD Open date: 20th Nov 2018.
• NCD Closes on 20th Dec 2018.
• Minimum Application Size: Rs 10,000 (10 NCD) and in multiples of Rs 1,000 thereafter.
• Listing: BSE Exchange 
• Credit Ratings: The NCDs have been rated [ICRA] AA/Stable by ICRA for an amount of up to Rs. 2,000 Crores and IND AA/Stable by India Ratings for an amount up to Rs. 2,000 Crores.
• Interest Rate on NCDs: The ROI ranges from 9.67% to 10.25% depending on the category of investor and tenure of the NCDs.
• Available Tenor options : 42 months / 5 years / 10 years
• Frequency of Interest payment: Monthly & Annual. Cumulative options are available for 42 months tenure NCD series.

How to Invest? 

You have two ways to Invest 

1. Offline- Click on this link “JM NCD” and fill your detail take printout and submit it to any Broker.
2. Online- Open your Demat account, there you will get the link for applying ( If there is no link then contact your broker they will apply on behalf of you).

Taxation

• Interest earned on NCD bonds is taxable as per the tax slab of the investor.
• If you sell NCDs on stock exchange before one year from the date of purchase, Short Term Capital Gains Tax is applicable. Tax rates depend on the tax slab you fall into.
• If you sell NCDs on stock exchange before maturity but after one year, Long Term Capital Gains Tax (if any) at 20% with indexation & 10% without indexation is applicable.