Additionally, investors should: 

• Analyze the company's past financial performance, including profitability and debt levels. 
• Review previous NCD redemptions to check whether the company has a good repayment track record. 
• Research the company's sector and market conditions that could impact on its ability to meet obligations. 

Interest Rates and Tenure of the New NCD 

Interest rates play a vital role in the attractiveness of an NCD issue. Investors should compare interest rates across various NCDs and other fixed-income instruments like fixed deposits and government bonds. 

Key factors to evaluate: 

• Secured vs. Unsecured NCDs: Secured NCDs are backed by collateral, making them safer, while unsecured NCDs have no backing and are riskier. 
• Cumulative vs. Non-Cumulative NCDs: Cumulative NCDs pay interest at maturity, whereas non-cumulative NCDs provide periodic interest payments. 
• Tenure and Liquidity: Some new NCDs have long tenures, and investors should check if they can exit early by selling them on the stock exchange.