What is Corporate Debt?
Corporate Debt means non-convertible debt securities, which create or acknowledge indebtedness, of a company or a body corporate constituted by or under a Central or State Act. It includes debentures, bonds and such other securities.
Corporate bonds are issued by a corporation to raise money in order to expand its business and are usually longer term in nature, with a maturity period of over one year from the date of issue, whereas a Commercial Paper is a debt instrument with shorter maturity periods (less than one year).
The Primary Corporate Debt market in India is primarily through a private placement
Benefits of investing in Corporate Debt:
- Guaranteed rate of return (coupon rate)
- Higher yield compared to government securities
Who can invest in Corporate Bonds/Commercial Paper?
- Individuals
- Banking companies
- Corporate bodies registered or incorporated in India and unincorporated bodies
- Non-Resident Indians (NRIs)
- Foreign Institutional Investors (FIIs) - within the limits set for their investments by SEBI
The amount invested by single investor should not be less than Rs.5 lakh (face value).
We offer our clients investment opportunities in
- Corporate Fixed Deposits with high credit rating from ICRA and CRISIL
- Corporate Debt instruments like Non Convertible Debentures and Tax Bonds.