Lower Risk
NCD reduces your risk as they are backed by the company's assets.
Higher ROI
Return is relatively higher in NCDs than a lot of other investment avenues.
Tax Exemptions
No income tax is deductible at source as per the provisions of Sec 193 of the IT Act.
Liquidity
NCDs are listed and traded on the exchange, hence providing liquidity to the investor.
Credit Rating
Agencies like CARE, FITCH, CRISIL, ICRA rate NCD's that are good indicator of quality of debt paper.
Convenience
As NCDs are only in Demat online form, it is easier to handle and track.