NCD Application Process

The NCD application process tells us about the procedure and method for applying for an NCD IPO.

In India, NCD IPO applications can be filed through the ASBA process. SEBI also allows individual investors to submit NCD IPO applications for a value of up to Rs 5 lakhs through the UPI mechanism. Another important point to note is that the applications for NCDs can be filed only in dematerialized form.

The procedure for applying for an NCD IPO is very similar to the procedure for applying for an IPO of shares. Investors can apply for NCDs online or offline through self-certified syndicate banks (SCSB) or intermediaries or through the stock exchange. Let us go through the issuance procedure for each mode in detail.

1. NCD Application Online

Investors can apply for an NCD IPO online through SCSBs and other intermediaries, including brokers, provided the online facility is provided by the respective intermediaries.

1.1. NCD online application via SCSB

Investors can apply for NCD IPO electronically through the Internet banking facility, provided it is available with the SCSB where the investor's ASBA account is maintained.

The following are the general steps to apply for an NCD IPO through SCSB:

• The investor can log into his Internet banking account.
• Visit the 'Investments' section.
• Look for the debentures/bonds/NCD section.
• A list of active/current NCDs will be displayed.
• Select the NCD for which you wish to make an application.
• Select ASBA and enter the required NCD details.
• Submit the application.

Once the application is submitted, SCSB will upload the offer on the exchange platform and block the funds from the ASBA account.

1.2. NCD Online application through Intermediaries

The investor can apply for the NCD IPO online through NCD intermediaries such as a registered stock broker, provided the broker offers an online application for the NCD IPO. Not many brokers allow you to invest in an NCD IPO online. Currently, very few brokers like Nuvama Wealth (Edelweiss), Angel One and SBI Securities offer the facility to apply for NCD IPOs electronically. You need to check with your broker or intermediary if the online application facility for NCD IPO is available with them.

Steps to apply for NCD IPO through brokers:

1. Log in to your broker's platform.
2. Locate the Primary Market/Debt/NCD IPO section.
3. Select the desired NCD.
4. Select the desired NCD series for investment.
5. Enter the investment quantity/amount.
6. Select the payment mode available with your broker.
7. Enter the UPI details for the UPI application mode.
8. Enter the ASBA account number for ASBA mode.
9. Submit.
10. Approve the UPI mandate on receipt (in case of UPI application).

The broker uploads the bid on the exchange platform and forwards the required details to SCSB to block the funds in case of an ASBA application.

1.3. NCD online application via the stock exchange

The BSE and NSE stock exchanges offer retail investors the facility to apply for NCDs online through the UPI mechanism. BSE and NSE have developed a web-based platform and mobile app BSEDirect and NSEgoBID respectively to enable retail investors to apply for NCD bonds up to Rs 5 lakhs using their UPI ID.

The investor has to register once with the NSE/BSE of his choice to make an online application through the exchange. Once the investor submits his bid, it will be automatically uploaded to the bidding platform of the exchange and the amount will be blocked through the UPI mechanism.

Refer to the detailed guidelines on NSEgoBID and BSEDirect for information on the registration process and how to apply for NCDs through the exchange.

Important links :

• Web links of BSEDirect and NSEgoBID.
• PlayStore links for BSEDirect and NSEgoBID.
• AppStore links for BSEDirect and NSEgoBID.

1.4. NCD application through GoldenPi

GoldenPi is a SEBI-registered online bond platform provider and debt broker that allows retail investors to apply for NCD IPOs through the UPI mechanism. You need to register with GoldenPi to apply through their platform.

Steps to invest in NCD IPO through GoldenPi

1. Visit www.goldenpi.com
2. Look for the "Collections" tab.
3. Click on Best Ongoing IPOs.
4. Select the desired NCD IPO.
5. Select the series and investment quantity.
6. Enter your name, email id and mobile number for verification.
7. Enter PAN and demat account details,
8. Enter the UPI ID.
9. Click on "Apply IPO".
10. Approve the UPI mandate

1.5. NCD application through Indiabonds

Indiabonds is India’s fixed-income investment platform that enables investors to easily and conveniently invest in various types of bonds/debt instruments such as high-yield bonds, NCDs, tax-free bonds, Sovereign Gold Bonds, bank bonds and capital gain bonds. Investors can invest through UPI or ASBA.

Steps to apply for NCD IPO with Indiabonds:

1. Visit www.indiabonds.com
2. Look for the ‘Products’ section on the home page.
3. Go to Public Issue
4. Select the desired NCD.
5. Click on ‘Apply Now’.
6. Select the investor type and category.
7. Select the investment series and enter the quantity.
8. Click on Invest.
9. Enter the personal details i.e. name, date of birth, e-mail, contact, address, demat details and payment details
10. Preview and confirm the form and confirm.
11. Confirm the UPI mandate upon receipt.

Note:

1. In case of payment in ASBA mode, the investor must print, sign and submit the form at the nearest designated office.
2. When applying for the first time via Indiabonds, the personal details must be entered. For subsequent applications, the details are already filled in.

2. NCD Application Offline

Investors can apply offline by submitting the physical NCD application form to the designated branches of SCSB or intermediaries.

The physical copy of the NCD application form can be obtained from any of the following sources:

• Office of the Lead Manager.
• Depository Participant.
• Consortium member.

Alternatively, the NCD application form can also be downloaded from the websites of the Lead Managers, Stock Exchanges, SEBI, Company and SCSBs.

Steps to invest in NCD offline

1. Download the NCD form from the exchange or company's website or get a physical copy of the form from the company, lead manager, broker or SCSB.
2. Print the NCD form if it has been downloaded.
3. Fill the form with the applicant details, investor category, offer details, client ID, DP ID and bank account details.
4. Sign the form.
5. Submit the completed documents to the office of the stock broker/designated CDP (Collecting Depository Participants) office/designated RTA (Registrar and Transfer Agent) office.

2.1. NCD Application Form

The NCD application form is a two-page document. The first page contains the list of details to be filled in by the applicant and the acknowledgement slip. The second page contains the issue structure, instructions, undertaking details and contact details of the company and the registrar.

A physical application form has a pre-printed unique application number (UAN). In the electronic application form, the UAN is generated automatically at the time of downloading.

2.2. Sample NCD application form

The content of the NCD application form

• Date of opening and closing of the issue and the application number.
• Space to indicate the intermediary code(s) to know through whom the application is being submitted.
• Important section for the applicant with the following details
  • Details like name, address, date of birth, contact details and email ID.
  • Investor category and sub-category.
  • Depository Details.
  • Select the desired NCD series for the investment. (Note: If no series is ticked, the company usually allots Series I NCD. Read the instructions overleaf carefully)
  • Investment details such as the number of NCDs to be invested and the amount to be paid.
  • ASBA details or UPI details, as applicable.
  • PAN and signature of the applicant(s).
• Space for affixing the stamp of the intermediary uploading the offer to the exchange.
• Acknowledgement slip.
• Instructions at the back of the form.

3. NCD application status

The NCD application status tells you about the status of your application. You can check the status of your NCD application online on the BSE and NSE websites.

To check the status on the BSE website, proceed as follows:

1. Open the Status of Issue Application on the BSE website.
2. Click on Debt as the issue type.
3. Select the name of the issuer.
4. Enter the application number or PAN number.
5. Click the “I am not a robot” check box.
6. Click Search.

To check the status on NSE follow the below steps:

1. Login into the Verify IPO Bid page of the NSE Website.
2. Enter the Application number or PAN number.
3. Click on submit.

Note: To avail of the online application check status on NSE, the investor has to register one time with NSE by providing the PAN details.

4. Buying NCD in the secondary market

Companies first issue NCD IPOs and then list on the stock exchange and later trade them on the secondary market. Investors can therefore either subscribe when a company announces an NCD IPO or buy them later in the secondary market when they are traded like shares, but with less liquidity and volatility.

Investors can buy NCDs in the secondary market by using the brokerage platform or internet banking facility of banks that facilitate bond trading.

5. Upcoming NCD Issues

To track the list of upcoming NCD issues for investment, visit the NCD page of Chittorgarh.com. You can find the details of NCD for application, NCD review, and subscription status all in one place.