Quick answer: A bond is a loan to a government or company that pays fixed interest (the coupon) and returns your principal at maturity. Through PCJ Holdings — a SEBI-registered stock broker (INZ000068536) and NSDL depository participant — you can invest in listed bonds and NCD public issues on NSE and BSE, serving investors across India from our Connaught Place, New Delhi office.
What are bonds and NCDs?
When you buy a bond, you lend money to the issuer — the Government of India (G-Secs, SDLs, treasury bills), public-sector enterprises, or private companies. In exchange the issuer promises periodic interest and repayment of face value on a fixed maturity date. A non-convertible debenture (NCD) is a corporate bond that cannot be converted into equity shares; companies raise NCDs through public issues you can apply to from your PCJ account, and many NCDs then list on the exchanges where they can be bought and sold like shares.
The vocabulary that matters
- Coupon — the fixed interest rate on face value, usually paid annually, semi-annually or monthly.
- Yield — coupon income relative to the price you actually pay; if you buy below face value, your yield is higher than the coupon.
- YTM (yield to maturity) — the total annualised return if held to maturity at today's price. Use YTM, not the coupon, to compare bonds.
- Maturity — the date your principal is repaid. Longer maturities are more sensitive to interest-rate moves.
- Credit rating — an agency's opinion (AAA to D) of the issuer's ability to pay. Higher yield usually means lower rating — that trade-off is the heart of bond selection.
The risks — stated plainly
- Credit risk — the issuer may delay or default. Ratings help but are not guarantees; diversify across issuers.
- Interest-rate risk — when market rates rise, existing bond prices fall (and vice versa). This matters if you may sell before maturity.
- Liquidity risk — some listed bonds trade thinly; exiting early can mean accepting a lower price.
- Reinvestment risk — coupons received may have to be reinvested at lower prevailing rates.
Taxation at a glance
Coupon interest is generally taxed at your slab rate. Capital gains on sale or redemption depend on the instrument type and holding period, and rules are revised in Union Budgets. We deliberately do not print rates here so this page never misleads you — confirm the current treatment for the specific bond with your tax adviser, or ask our desk for the issuer's official tax note.
How investing through PCJ works
- Tell us your goal — income, capital preservation, or a maturity matched to a future expense.
- See live options — current NCD public issues and screened listed bonds with rating, YTM and maturity side by side.
- Apply from your account — public issues via your PCJ account (UPI/ASBA), listed bonds on NSE/BSE like any traded security.
- Held in your name — bonds sit in your own NSDL demat account; coupons come straight to your bank account.
- Reviewed with you — your Relationship Manager tracks maturities and new issues against your plan.
Our role: PCJ Holdings is a SEBI-registered stock broker and distributor — we provide access, execution and service. We do not issue bonds, do not manage discretionary portfolios under this service, and never promise or guarantee any issuer's payments.
Who is fixed income for?
Retirees who want predictable income, conservative investors balancing an equity portfolio, and anyone with a known future expense that a bond maturity can be matched against. For goals that need inflation-beating growth over long periods, equity mutual funds may suit better — many PCJ clients hold both, and we will help you find the right mix. See Mutual Funds, Wealth Management and the planning calculators.
Frequently Asked Questions
A bond is a loan you give to a government or company in exchange for regular interest (the coupon) and return of principal at maturity. An NCD — non-convertible debenture — is a bond issued by a company that cannot be converted into shares. NCDs typically pay higher coupons than government bonds because they carry credit risk of the issuer.
The coupon is the fixed interest the issuer promises on face value. The current yield is the coupon divided by the price you actually pay. Yield to maturity (YTM) is the total annualised return if you hold the bond till maturity at today's price — it is the most complete number to compare bonds.
Credit risk (the issuer may delay or default — check the credit rating), interest-rate risk (bond prices fall when interest rates rise, and vice versa), and liquidity risk (some bonds trade thinly, so exiting before maturity may mean accepting a lower price).
Coupon interest is generally taxed at your income-tax slab rate. Gains on selling or redeeming listed bonds may be taxed as capital gains, and the treatment differs by bond type and holding period. Tax rules change — please confirm the current treatment for the specific instrument with your tax adviser before investing.
Many listed bonds and NCDs trade at a face value of Rs 1,000 per unit, while some corporate bond platforms and public issues set minimums of Rs 10,000 or more per application. The minimum depends on the specific issue — our team will share the details of live offerings when you speak with us.
PCJ Holdings is a SEBI-registered stock broker and distributor. We help you access public issues of NCDs and listed bonds on NSE and BSE through your PCJ account, and hold them in your NSDL demat account. We do not issue bonds ourselves and do not guarantee returns of any issuer.
Want steady, scheduled income?
Tell us the amount and the horizon — we will show you the current NCD and bond options with ratings and YTM, with no obligation.