Pronunciation: [ˌɛnsˌiːdˌiːˈɛs] (IPA) 
The spelling of the acronym "NCDS" is fairly straightforward when using the International Phonetic Alphabet (IPA). The first letter "N" is pronounced as in "no" /nəʊ/, followed by "C" which is pronounced as in "cat" /kæt/. The following "D" is pronounced as in "dog" /dɒɡ/, and finally, the last letter "S" is pronounced like "sun" /sʌn/. Therefore, the correct pronunciation of "NCDS" is /ˌen.siː.diː.ɛs/.
NCDS is an acronym that stands for Non-Convertible Debentures. Non-Convertible Debentures are a type of loan instrument commonly issued by corporations, governments, or financial institutions to raise long-term funds from investors. They are essentially debt securities or bonds that pay a fixed interest rate over a specified period.
Unlike convertible debentures, NCDS cannot be converted into equity shares of the issuing company. This means that holders of NCDS do not have the option to convert their debentures into stocks at a later date. NCDS are purely debt instruments that offer investors fixed interest payments during the tenure of the debenture, along with the return of the principal amount at maturity.
The interest rate on NCDS is typically higher than traditional bank loans, making them an attractive investment option for individuals seeking fixed income returns. Many investors are drawn to NCDS due to their relatively low risk compared to equity investments, as they are backed by the issuing company's assets and future cash flows.
NCDS are typically listed on stock exchanges, allowing investors to buy and sell them in the secondary market before maturity. However, they are less liquid than stocks and can experience price fluctuations based on market conditions, interest rate changes, and the financial health of the issuing entity.
Overall, NCDS serve as an effective tool for corporations and institutions to raise funds while providing investors with a fixed-income investment option with relatively lower risk than equity investments.
