Market Linked Debentures
The best of both worlds — the stability of debt with the growth potential of the market.
Market Linked Debentures (MLDs) offer a structured way to participate in the performance of underlying market assets — such as the Nifty or Sensex — while providing a high degree of capital protection. With ShreeVaah, you can access these innovative instruments for a blend of fixed-income security and equity-like return potential.
How MLDs Help You
MLDs are designed for investors who want to benefit from market upside without taking on the full risk of direct equity investment.
- Capital Protection: Your principal is highly protected, either fully or partially, regardless of market performance.
- Potentially High Returns: Returns are linked to an underlying index or asset — when markets perform well, returns can significantly exceed traditional fixed-income products.
- Portfolio Diversification: A strategic way to diversify, giving you exposure to market movements with a built-in safety net.
- Tax Efficiency: Returns from listed MLDs are often treated as long-term capital gains, which may be more tax-efficient than other debt instruments.
Understanding the Structure
An MLD is a debt instrument with a maturity date. The final return is calculated based on the performance of a chosen index or asset over the tenure.
- Capital Protection: A large portion of your investment is placed in a fixed-income instrument to ensure the principal is protected.
- Market Exposure: A smaller portion is invested in derivatives or other market-linked instruments to capture potential upside.
- Market Exposure: A smaller portion is invested in derivatives or other market-linked instruments to capture potential upside.
- Maturity: The MLD matures after a set period, and you receive your principal along with the calculated returns.
Eligibility & Documents Required
Investing in MLDs requires a Demat account and a straightforward documentation process.
Eligibility
- Identification: You must be an Indian citizen with a valid PAN and Aadhaar card.
- Bank Account: A bank account in your name is mandatory for all transactions.
Documents Required
- Proof of Identity: PAN Card (mandatory).
- Proof of Address: Aadhaar Card, Passport, or Voter ID.
- Proof of Bank Account: A cancelled cheque or the first page of your bank passbook.
- Demat Account: A valid Demat account is essential to hold the MLDs.
Frequently Asked Questions
What is an MLD?
An MLD is a debt security offering returns linked to the performance of an underlying market index, designed to protect your capital while providing potential for high returns.
How are the returns calculated?
Returns are based on a pre-defined formula that links the MLD's performance to the underlying index.
What is ShreeVaah's role?
We act as a facilitator, providing access to the platform to invest in MLDs issued by SEBI-registered entities, and assisting with documentation and the transaction process.
Important Information & Disclosures
All information on this page is for general awareness and educational purposes, and does not constitute investment advice or a recommendation. ShreeVaah, through Tre Sessanta Financial Services Private Limited, does not issue, underwrite, or manage MLDs — our role is limited to facilitating access to MLD offerings from SEBI-registered issuers.
Nature of MLD Investments
MLDs are structured debt instruments whose returns are linked to an underlying market index or asset. They typically offer capital protection, either full or partial, depending on the structure — but they are not risk-free, and may carry credit risk, market risk, and liquidity risk.
Risk & Return Profile
Returns are calculated based on a pre-defined formula linked to the performance of the underlying index. If the index performs well, investors may earn higher returns than traditional fixed-income products; if it underperforms, the principal may still be protected, but returns could be minimal or zero. MLDs are subject to issuer credit risk and may not be actively traded, which can affect liquidity.
Our Role
ShreeVaah acts as a facilitator, providing access to the platform to invest in MLDs issued by SEBI-registered entities. All services, including account opening and investment execution, are provided by our respective principals; Tre Sessanta Financial Services Private Limited operates as an authorized franchisee of those principals. We do not guarantee the listing, liquidity, interest rate, or repayment of any MLD product.
Registration
- NSE Registration: AP2486036143 | BSE Registration: AP01329901173085, as a franchisee of Choice.
- Corporate ARN: 331296, valid June 16, 2025 – June 15, 2028.
Due Diligence
Investors must read offer documents, term sheets, and disclosures carefully, and are advised to consult a qualified financial advisor before investing. ShreeVaah is not liable for any loss arising from reliance on incomplete or inaccurate information, and acts solely as a facilitator — not assuming responsibility for delays, defaults, or disputes between investors and issuers.
Comprehensive Compliance Declaration
Under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, Market Linked Debentures (MLDs) are classified as structured debt securities. Because their payoffs depend on an underlying benchmark (such as the Nifty 50, Sensex, or 10-year G-Sec) and carry credit/liquidity risks
Regulatory disclaimer & risk disclosure: market linked debentures (MLDs)
- Nature of Instrument & Payoff Complexity: Market Linked Debentures (MLDs) are complex, structured debt securities whose redemption proceeds and returns are linked to the performance of underlying market benchmarks (e.g., equity indices, government securities, or interest rate indicators). Returns are neither fixed nor guaranteed. In certain market scenarios, if the underlying benchmark does not perform as per the specified payoff conditions, returns may be negligible or nil.
- Credit & Issuer Default Risk: MLDs represent senior, unsecured or secured debt obligations of the issuing corporate/NBFC. Repayment of principal and any coupon is subject entirely to the financial solvency and creditworthiness of the issuing entity. Credit ratings assigned by rating agencies (e.g., CRISIL, ICRA, CARE) reflect an opinion on the issuer’s credit quality at that specific time and do not represent a guarantee of timely payment or principal safety.
- Principal Risk (Principal Protected vs. Non-Protected): In "Principal Protected" MLDs, the principal protection is valid only at maturity and is strictly subject to the issuer not defaulting. In "Non-Principal Protected" MLDs, investors may suffer a partial or total loss of their initial investment depending on the performance of the underlying reference index.
- Secondary Market & Liquidity Constraints: While MLDs are listed on recognized stock exchanges (NSE/BSE) pursuant to SEBI (Issue and Listing of Non-Convertible Securities) Regulations, trading volumes in the secondary market are typically low. Investors may find it difficult or impossible to exit prior to maturity, or may only be able to liquidate at a substantial discount to face value.
- Independent Valuation: Under SEBI norms, the valuation of MLDs is conducted periodically by a SEBI-appointed independent valuation agency. These periodic matrix valuations are indicative and do not reflect the actual liquidation value attainable in the market at any interim point.
- Statutory Taxation Warning (Section 50AA): Pursuant to Section 50AA of the Income Tax Act, 1961, gains arising from the transfer, redemption, or maturity of Market Linked Debentures (specified debt securities) are treated as Short-Term Capital Gains (STCG) regardless of the holding period, and taxed at the investor's applicable marginal income tax slab rate. No long-term capital gains benefits or indexation benefits apply.
- Distributor Role & Non-Advisory Notice: Tre Sessanta Financial Services Pvt. Ltd. acts solely as an introducing broker / distribution intermediary for MLD issues. Tre Sessanta is not a SEBI Registered Investment Adviser (RIA). We do not evaluate bespoke portfolio fitness or issue guaranteed forecasts. Investors must review the Issuer's Information Memorandum (IM) / Key Information Document (KID) and consult their independent financial and tax advisors prior to transacting.
Curious whether MLDs fit your portfolio? Talk to the ShreeVaah team to learn more.
