&lt;p&gt;Non-convertible debentures are issued by companies to raise funds for various purposes. NCD can be secured or unsecured and have a fixed maturity date and interest rates as per the terms mentioned by the company. They generally have higher interest rates than bonds and fixed deposits by banks. Credit rating of issuing company and certain financial ratios are important to determine the level of risk, but generally are subject to various risks, offer good liquidity options and may offer tax benefits.&lt;/p&gt;