Investment Objective: To generate fixed income on regular basis, with option to withdraw any time.

Typically it is a loan given, against which the investor gets interest at specified rate for specific period

Who issues:


Government Companies

Public Sector Undertaking Companies

Manufacturing Companies


What is the duration of Investment:

It varies from 5 Year to 10 Years.

What are the features of Debentures:

Debentures are issued at face value for specific duration by the issuing company.

If the face value of debentures is Rs.1000, then for Rs.100000 investment you get 100 debentures.

These debentures are listed in leading stock exchanges, immediately on issuance.

Generally, debentures with higher rating (AAA) and higher interest rate trades at premium to its face value

Investors who want to withdraw their investment can sell these debentures in the stock exchange.

Investors who remain invested on the record date of interest payment are eligible for interest.

Debentures may be : Secured or Unsecured in nature. It is clearly mentioned on the initial issue application of the debenture.

What is the interest rate offered on these fixed deposits:

It varies from 7% to 12%

Is there any special interest for Senior Citizens (age 65 and above)

Some companies do offer an extra interest of 0.25% to 0.50%

What are the interest payment options: It varies between issuing companies.


Half Yealy



What is the Taxation law for interest earned from fixed deposit:

The interest earned is Taxable as per normal tax rates

Tax deduction at source (TDS) is done when interest earned from any single deposit crosses Rs.2500.

Who Can invest in a debentures?

Eligible investors are indicated in the each debenture issue application: In most issues, following investors are allowed to invest: Individuals / HUF's / NRI's / Trusts / Proprietorship firms/ Partnership firms/ Private limited companies / Limited Companies / Societies / Associations.