Fixed Income
It is an investment product that provides fixed rate of return for a specified period & the principal amount is returned on maturity.
Corporate Fixed Deposits
Corporate Fixed Deposits (CFDs) are investment instruments offered by companies, governed by Sections 73-76 of the Companies Act, 2013. Unlike bank fixed deposits, CFDs are unsecured, meaning they do not have collateral backing. However, they often provide higher returns compared to bank deposits.
Key Features of Corporate Fixed Deposits:
- Tenure: The deposit period ranges from 1 to 5 years.
- Interest Payout Options: Investors can choose from monthly, quarterly, half-yearly, or yearly interest payouts based on their preferences.
- Risk: Since these are unsecured deposits, it's crucial for investors to thoroughly assess the financial health of the company before investing.
- Interest Rates: Rates are subject to change and are typically determined on the date of the deposit. It's recommended to verify the current rates with the branch team before investing.
Important Considerations:
- Corporate Fixed Deposits are unsecured, meaning they carry a higher risk compared to bank deposits.
- It is essential to review the financial stability and creditworthiness of the issuing company before making an investment decision.
Please note that the interest rates mentioned were last updated on August, 31st 2024
Note: M/s. Integrated Enterprises (India) Pvt. Ltd., and its Directors/Employees cannot be held responsible for individual investment decision based thereon.
List of Companies accepting FD ->
Bonds & Non-Convertible Debentures (NCDs)
When a company needs to raise funds from the public, one of the common methods is by issuing a debt instrument known as a debenture. A debenture is a type of bond that the company issues for a specified tenure, offering a fixed interest rate to the investor over the period.
Non-Convertible Debentures (NCDs):
- These are debentures that cannot be converted into equity shares of the issuing company.
- NCDs may or may not be secured. A secured NCD is backed by the company's assets.
Credit Rating:
- A company willing to raise money shall get its issue rated by credit rating agencies like CRISIL, ICRA, CARE, India Rating, Brickwork etc.
- A higher rating suggests lower risk, while a lower rating indicates higher risk.
Corporate Bonds
Disclaimer for Investment in NCDs
Investors willing to invest in any NCD issue should read the offer documents thoroughly and understand the risks associated with NCDs before investing.
M/s. Integrated Enterprises (India) Pvt. Ltd. And its Directors/Employees cannot be held responsible for individual investment decisions by its customers. Our Customers are expected to review the Prospectus and make informed investment decisions thoroughly.
GOI Bonds
Floating Rate Savings Bonds
Reserve Bank of India has introduced floating rate savings Bonds from 1st July 2020. As the name denotes, the interest rate would be reviewed every six months. From July 2023 to December 2023, it is fixed at 8.05% (taxable). Tenure for the bonds is 7 yeaRs.Early redemption is allowed for Senior Citizens in specific cases.
Capital Gain Bonds
Floating Rate Savings Bonds:
Those desirous of availing exemption from capital gains tax under Section 54 EC may invest the sale proceeds in the capital gain bonds. The investment is to be made within a period of six months from the date of transfer/sale of the asset to get exemption from the capital gains tax. This exemption is available for long term capital gains i.e. the profits made from sale of assets after 3 years of acquisition.
| FEATURES | |
| Face Value | Rs.10,000 per Bond |
| Minimum Application* | Two Bonds of Rs.10,000 each |
| Maximum Application | 500 Bonds of Rs.10,000 (Rs.50,00,000) |
| Maturity | 5 years from the Deemed date of Allotment |
| Coupon rate | 5.25% annually |
| Interest payment | Annual |
| Transfer | Non-Transferable |
| TDS | Interest is taxable. No TDS is deducted on interest and wealth tax is exempted. |