NCDs are issued by businesses to raise funds. A business is eligible to issue NCDs if it meets following criteria:

1. Has net worth of equal to or more than Rs. 4 crore

2. Has been sanctioned working capital limit or term loan by a bank

3. Its borrower account is classified as a Standard Asset by the bank

4. Gets credit rating for issuance of the NCDs from one of the rating agencies-CRISIL, ICRA, CARE or the FITCH Ratings India Pvt. Ltd.