Bonds

NCDs and unlisted bonds

Private placements — deemed short-term, whatever the holding.

What it is

Unlisted NCDs and private-placement bonds. Gains transferred, redeemed or matured on or after 23 Jul 2024 are deemed short-term under section 50AA — taxed at slab however long held.

Min ticket: Often Rs.1,00,000+ face (issue terms vary) · Held in demat

How to buy it

Usually bought at issue through wealth desks — minimums run into lakhs.
No exchange exit: resale means finding a buyer bilaterally.
Model every rupee of gain at slab before comparing with listed 12.5% LTCG.

Costs

Distribution mark-ups buried in the issue price
Bilateral resale discounts

Liquidity

Effectively locked in — no exchange, thin bilateral market.

Regulation

SEBI NCS/private-placement rules; section 50AA for post-23-Jul-2024 tax.

Risks that bite

Default risk with no price discovery
Deemed-STCG tax drag versus listed LTCG

Run the slab-vs-LTCG maths →

Compare listed vs unlisted corporate-bond tax →

Tax FAQ

How is NCDs and unlisted bonds taxed?

Interest is taxed at your slab. Transfer or redemption gains follow the post-23-Jul-2024 rules: listed paper held over 12 months is LTCG at 12.5% without indexation, short-term gains join income at slab, and unlisted bonds are always deemed short-term under section 50AA.

Educational, not advisory — and never a quote. LetsInvest is a research publication, not a SEBI-registered investment adviser, and we run no bond-price or yield feed. YTM, ladder and tax outputs are illustrations of numbers you enter. Confirm anything that matters on RBI Retail Direct or the issuer's offer document before you act.

Sources

Reviewed 24 Sept 2026. Yields move — the RBI portal, CCIL and the tax department are the authority, and this hub links straight to them.

SEBI - Issue and Listing of Non-Convertible Securities Regulations, 2021 (last amended 21 Jan 2026)SEBI framework for the issue and listing of non-convertible securities, including NCDs.
SEBI - Private-placement listing timelines under the NCS frameworkSEBI timelines and listing obligations for securities issued on a private-placement basis.
CBDT - FAQs on the new capital-gains regime (PIB, 24 Jul 2024, PRID 2036604)Two holding periods since 23 Jul 2024 (12 months listed, 24 months other); other-LTCG at 12.5% without indexation.
Income Tax Department - Tax on sale of debentures (as amended by Finance Act, 2026)Post-23-Jul-2024 holding table (listed debentures/G-secs: 12 months; unlisted: deemed STCG).
Income Tax Department - Section 50AA (special provision for specified securities)Unlisted bonds/debentures transferred, redeemed or matured on/after 23 Jul 2024 are deemed short-term.