Indel Money Limited NCD — Review

Indel Money Limited NCD — Key Facts

Indel Money Limited is a NCD rated IND A-/Stable offering 9.00–12.25% p.a. , listed on BSE.

Our Take — Who Should Consider This NCD

This NCD issue is a good option for investors who want safety along with regular returns. The NCDs have been rated 'IND A-/Stable', which means they are considered to have adequate safety for timely payment of interest and principal. Additionally, these NCDs are secured against the company's assets, ensuring 100% security cover. This makes them suitable for risk-averse investors like retirees, senior citizens, or anyone looking for a stable income source. If you are looking to diversify your investment portfolio beyond fixed deposits or volatile stocks, this could be a good choice. However, you should still review the risk factors mentioned in the offer document before making a decision.

About the Issuer

Liquidity & Exit

One of the advantages of this NCD is that it will be listed on the BSE stock exchange. This means you can sell your NCDs in the stock market if you need money before the maturity date. This feature provides flexibility that is not available in bank fixed deposits. However, please note that there is no guarantee that there will always be buyers for your NCDs, and the price you get may be higher or lower than what you paid, depending on market conditions. There is no option to return the NCDs to the company before maturity (put option), and the company also cannot force you to sell early (call option). So, if you need an early exit, you will have to sell your NCDs on the stock exchange.

Tax Treatment

If you invest in Indel Money NCDs, the interest you earn will be added to your income and taxed according to your income tax slab. The company will deduct tax at source (TDS) at 10% on the interest payments. However, if your total income is below the taxable limit, you can avoid TDS by submitting Form 121. For Non-Resident Indians (NRIs) and Foreign Portfolio Investors (FPIs), different tax rules apply, and they may benefit from tax treaties between India and their home country. Also, if you sell these NCDs before maturity, any profit you make will be treated as capital gains and taxed accordingly. Since tax rules can be complex, it is always a good idea to talk to a tax advisor before investing.