NCD

Public Issue 4
What is NCD?
NCD’s are type of debt instruments
that are used to raise medium to
long-term funds by companies
through private or public issue.
Type of NCD issued by MFL
MFL issues Listed Secured Redeemable Non-convertible Debentures

Listed Debentures Secured Debentures

These are listed in the wholesale debt market of These are secured by current assets of the
BSE. company.

Redeemable Debentures Non-convertible Debentures

These can be either redeemed at the period of These cannot be converted into the shares of
maturity or by trading in the wholesale debt the company.
market of BSE.
Features of NCD
BSE They are listed on wholesale debt market of BSE which enables liquidity to holder.

CRISIL Our rating is Crisil A Stable.

% Interest Payouts on NCDs is at time periods of Monthly or at maturity depending on scheme opted .

Demat form NCD’s can be traded in the secondary market.

Duration of NCD and rate of return are fixed at the time of issuing.

There is no pre-mature closing for NCDs. Only transfer/sale of NCDs can be done in case of any
financial emergencies for the investor.

No subscription cheques are needed as banks will mark a lien to the accounts immediately when
application is submitted to banks(ASBA facility)
 In short we can say NCD is an instrument that offers high
returns with moderate risk while giving you the flexibility of
choosing between short and long tenures.
ASBA
Application Supported by Blocked Amount (ASBA) is an
application made by an investor, containing an authorization to
Self-Certified Syndicate Bank (SCSB) to block funds available in
applicant’s Savings Bank Account or Current Account (other
than Overdraft or loan accounts), for subscribing to an Issue.

Amount is blocked to the extent of application money, till

finalisation of allotment in the issue or till withdrawal/ failure of
issue/ rejection of application, as the case may be.
Benefits for the investors
Secured: Our NCDs issue in public are safer, as it can be issued
only by Companies which are having good credit rating as specified
by RBI and monitored by regulatory and other authorities like
SEBI, Exchanges, Trustees, RTA etc.

Easy Accessibility: Since it is a public issue, investor can access it

easily.

Higher Returns: Returns from NCDs are higher compared to other

investment options.

Fixed Returns: Returns are fixed as it is not affected by market

volatility.
Benefits for the investors
Liquidity: Our NCDs can be liquidated easily in secondary Market.

Transferability: NCDs are transferable.

Flexibility in scheme: Customers can either opt for monthly

scheme or maturity scheme.

The Minimum subscription amount for our NCD through public

issue is less than the NCDs issued through private placement.
 SCHEMES AVAILABLE FOR THE INVESTOR

Cumulative
+ Monthly
+

-
Participants in a NCD Public issue

Depository Credit Rating Agency

Major
Bankers Issuer
Players
Registrar Trustee

Stock Exchanges NSE / BSE Broker

Mode of Debentures Issue
Both Monthly and Cumulative scheme can be availed only in Demat form. It
offers more liquidity compared to physical form.

Demat
• Holds it in electronic form (dematerialized form)

• Should have a Demat account

DEMAT APPLICATION PROCESS FOR BRANCHES
1. Customer will walk in to the branch
2. Customer need to fill Demat Application form
3. Create UCIC for customer.
4. Collect Following documents:-
a. Recent colour passport size photograph
b. Cancelled cheque leaf with name printed on it.
c. If name is not printed on the cheque leaf, customer should submit first page of the passbook (with
printed account number, name and address) or latest transaction updated statement with bank seal.
d. Address proof copy after verifying with original (refer document list mentioned in the Guidelines for filling
Individual CKYC Application Form- ‘Proof of Identity [POI]’ Section C ).

e. PAN Card after verifying with original

f. Aadhar Card after verifying with original
DEMAT APPLICATION PROCESS FOR BRANCHES

4. Customer should sign on all the submitted documents.

5. Branch seal, Signature, Name & Designation of BM/Staff required on all KYC documents

6. Branch should verify that Name written in the CKYC form is matching with name in PAN card and
address matching with proof address submitted by the customer.

7. Check the application with sample form before sending the scanned image to respective Zonal.
 DEMAT
ACCOUNT
OPENING
FORM
 DEMAT
ACCOUNT
OPENING
FORM
 DEMAT
ACCOUNT
OPENING
FORM
 DEMAT
ACCOUNT
OPENING
FORM
 DEMAT
ACCOUNT
OPENING
FORM
CANCELLED
CHEQUE
Self Attestation &
Branch Attestation
on
KYC Document
Self Attestation &
Branch Attestation
on
KYC Document
ADDRESS
PROOF
IMPORTANT POINTS TO BE NOTED WHILE
SENDING APPLICATION FORM
1. Scan all the documents (DP Application form, PAN Card copy, KYC documents and original cancelled
cheque)

2. Send all the scan copies to [email protected]

3. After getting mail confirmation from “[email protected]” send all original documents along with
application to below mentioned address

Wealth Management,
MUTHOOT FINCORP LTD,
MUTHOOT CENTRE, PUNNEN ROAD, TRIVANDRUM, KERALA - 695034

Please mention “For Urgent delivery – Demat application inside”

 Process to Fill the Application Form
NCD application to be downloaded from the Following at the time of
announcement of public issue.
APPLICATION FORM
• Stock exchange website (https://www.bseindia.com/)

• Company website (http://www.muthootfincorp.com/)

• Broker website ( to be decided)

• NCD Software (http://ncd.muthootapps.com/Default.aspx)

Login with Branch user name and password along with
your HRMS user name and password here
How to 1. Click on application

download
application form

2. Click here to download application form,

take a printout and fill in needed details

Make sure you have created customer profile before starting to enter the application details in software
 Fill the application form neatly without any correction

If in case of any correction, please use a new application form. Do not use whitener or any
other correction methods.

How to fill in Make sure that name mentioned in the application form match with the PAN provided.
application form
Write Date of birth correctly as mentioned in the PAN card

Make sure to tick the correct investment category(Refer 2nd page of application form to
know the category) Client ID columns for DMAT need not be ticked / filled up.

Refer to the copy of the DP statement for the correct Demat account number for filling up.

Mention the investment details correctly(Tick( ) any one series in the space provided,
number of NCDs applied to be written in the space provided below the selected series ,
Amount payable to be written in the space provided below the selected series )
 DEMAT account number should be written correctly as mentioned in DEMAT statement/

How to fill in self declaration form given by customer. Tick( ) NSDL if DP ID starts with IN, or else

application form Tick( ) CDSL

DP ID length is 16 digits
For NSDL 8 digit DP ID ( begins with IN ) + 8 digit Client ID/Benf ID
For CDSL - 16 digit Client ID+ Benf ID
KYC need to be collected from Investor

Particulars Demat

Name Proof PAN Card

Top portion of DEMAT(DP) account statement having DEMAT

DEMAT Account
account number / or DEMAT account self declaration given
Statement
by Investor
 STEP-BY-STEP PROCESS

Below slides will explain how to enter

details in NCD software
 TO ENTER CUSTOMER DETAILS IN NCD SOFTWARE

Click here

Click here to edit customer profile

For a new customer select “New”

Following slides will explain how to enter the details

Format for Self
Declaration
Letter
How to Login an application for an investor having multiple DEMAT
accounts
This is applicable in case if the investor wants to invest through a different DEMAT account and the customer
profile was created by a different branch.

 If the customer profile was created by your branch then follow steps for editing customer profile
as briefed earlier.
“Or else”
 If the Customer profile was created by a different branch then it cannot be edited by your
branch and so please follow the below steps:

Step 1: Download application form and fill the form with new DEMAT account
number.

Step 2: Click ‘Application’ and enter the details with the existing DEMAT account.
Step 3: Once you save the application, call your HUB branch and ask to reject the respective
application . Ask your HUB branch to mention reason as ‘Customer needs to apply with
new DEMAT’.

Step 4: After HUB branch rejects the application, check the ‘Rejected list’ and click on the
application number to edit.
 1. Check the ‘Rejected list’ to view the applications rejected by your HUB
branch.

2. Click on the application number, edit the details ,upload the supporting
documents and resubmit for HUB branch approval.

3. If there is any correction in the application form, login with a fresh

application form.

Step 1: Click Rejected List

Step 2: Click here to edit & correct application .

How to check
the Reject list Reason for Rejection as given by Hub Branch
How to send the
Approved
Application forms
to Hub Branch
Application Form Duly filled
Checklist of documents required

The documents should be stapled in the following order itself

1. Application form

2. Pan copy

3. Top portion of DEMAT(DP) account statement having DEMAT account

number / or DEMAT account self declaration given by Investor)
Setting an Application
1. Application form

2. Pan copy

3. Top portion of DEMAT(DP) account statement having DEMAT account

number / or DEMAT account self declaration given by Investor)

All the 3 Set of Documents should be Kept together with “Binder Clip”

All such set of application’s along with 2 covering letter taken from Reports to be Send to Respective
HUB BRANCHES. One covering letter acknowledged by HUB Branch to be received back and filed.
Guidelines for
HUB Branch
 What is a HUB Branch?

A hub branch is a coordinator for the ‘SPOKE’ branches in a

particular area. These spoke branches would be mapped to

this hub branch where in consolidations and scrutiny of

applications are being held.

 Checking of software entry with the uploaded documents
The verification is to be done with the uploaded scanned copies of the
following:

Application form PAN

Active DEMAT account statement/ or DEMAT account self

Role of Hub declaration given by Investor(For DEMAT customers)

Branch If the details entered in the software are correct and matching with the
above uploaded documents, Hub branch has to ‘Approve’ the
- Checker application in the software.

If in case there is any mismatch between details in the uploaded

scanned documents and details entered in the module, Hub branch has
to ‘Reject’ the NCD application of that customer in the software.

In cases of rejection, mention the valid reason.

 Step 1: Click on Approvals.
“You can now see the list of applications
entered by Spoke branches waiting for your
Step 2: Click on application number to view
approval”
details, “view application “page will open.
Comment box appearing on rejection

Write the rejection reason here

Click ‘Ok’ to save. The remarks you type here

can be viewed by the spoke branch.
 Receipt of hard copy of application from Spoke branch.

Hub branch needs to verify the following

Hard copy of the applications received from the spoke branches

are original.

Receiving Cross check whether all the applications are received as per the
approved list downloaded from the report section in the
Application software.
Check if hard copies of all required documents (, PAN, Active
From Spoke DEMAT account statement/ or DEMAT account self declaration

Branch given by Investor(For DEMAT customers), are attached with the

application form .

If all the above are available then one copy of Covering letter provided
by spoke branch to be acknowledged and provided back, the other
copy to be retained and filed at Hub Branch.
Bid File Verification - Critical

The HUB Branches will hand over applications to the designated H.O. Centres

Brokers will upload with in the BSE website and give acknowledgment together with bid number to the
HUB Branch.

Broker and our HUB Branch should ensure the ASBA Bank has marked lien on the same day in
applicants account for the subscription amount. Collecting branches may get the confirmation from the
applicant/Investor whether the lien is created for the proposed investment amount on their S.B.A/C’s

After bidding, the original applications will be submitted to respective Syndicate ASBA Banks with a list. Get
Acknowledgement in the list. After marking Lien by the Banks the tear off portion will be returned to
Brokers/H.O. Centres.
Points to Remember

NCDs can be availed only in Demat Form so please confirm with customers that they have a Demat
account.
In case the customer does not have demat account, inform them that we can facilitate opening a demat
account.
Ensure the applicant’s bank is a syndicate ASBA Bank, fill-in-the form including ASBA part, signed by
account holder.
Verify applicant’s details are the same as per Demat account.
Do Inform the customers that Amount in their account will be blocked to the extent of application
money, till finalisation of allotment in the issue or till withdrawal/ failure of issue/ rejection of
application, as the case may be
Please note that the amount marked as lien will not qualify for interest from our end till the allocation
of NCD
Points to remember continued

Take print out of the downloaded application form and never take photo copies as each application is
unique. Ensure that application downloaded has unique application number in 3 places and is not a
repetition of the earlier downloaded application .

Broker and our HUB Branch should ensure the ASBA Bank has marked lien on the same day in
applicants account for the subscription amount. Collecting branches may get the confirmation from the
applicant/Investor whether the lien is created for the proposed investment amount on their S.B.A/C’s.

For a Single Bank account maximum of 5 applications, (own name or relative names) can be made and if
a 6th application is made, it can lead to cancellation of all the applications.

Inform the customers that No tax will be deducted from our end.
Cases of new demat accounts for NCD

In case Demat account number is not available at the time of application and

the investor has applied for a demat account for this purpose, the NCD

application may be kept pending till the receipt of the Demat account number.

Processing of the NCD application including entering in the software to be

done only after getting the Demat account number and writing down the

same in the space provided in the application form.