Non-convertible Debentures: Entry Routes for Foreign
Investors
A. Introduction
1
public issues of non-convertible debentures
(
NCDs) and over 1,600
2 private
placements of corporate bonds in India, which is encouraging given
the COVID-19 pandemic and brief loss of investor appetite in the
initial phase of the pandemic. An increasing number of
M&A transactions also now involve NCDs as a form of
consideration/funding. As such, the rising popularity of NCDs
as a preferred mode of structured debt in India is not surprising
given the potential return they could provide in times where market
conditions have been uncertain.
NCDs are essentially debt instruments with a specified