Standard Capital Markets Overhauls NCD Repayment, Redeems ₹5 Crore

Standard Capital Markets Limited has altered the repayment terms for its secured, unlisted Non-Convertible Debentures (NCDs). The company is shifting from a single 'bullet' payment to a structure directly linked with incoming receivables. This move was underscored by a recent partial redemption of ₹5.00 crore.

New Repayment Structure Approved

The company's Board of Directors has sanctioned the revised repayment schedule. Under the new terms, NCDs will be redeemed as receivables are collected, allowing for partial, staggered payments rather than a single large sum at maturity.

On March 20, 2026, Standard Capital Markets completed a partial redemption totalling ₹5.00 crore. This involved 500 debentures, each with a face value of ₹1.00 lakh. With 36,202 debentures still outstanding, the NCDs were originally issued between October 30, 2024, and February 14, 2025.

Strategic Shift for Liquidity Management

This strategic pivot aims to strengthen Standard Capital Markets' liquidity management. By aligning debt servicing with the cash generated from receivables collected from pledged securities, the company seeks greater financial flexibility and operational efficiency. The ability to make partial repayments provides enhanced control over its available funds.

Historical Context and Previous Restructuring

Standard Capital Markets, a non-deposit-accepting NBFC, has previously raised funds through NCD issuances, including ₹130 crore in May 2025 and ₹100 crore in October 2024. Notably, the company had already restructured its NCD repayment mechanism in December 2025, moving towards a receivables-contingent model. In parallel strategic moves, Standard Capital Markets incorporated a subsidiary, Standard ARC Ltd., and is pursuing the acquisition of Three C Infratech Private Limited through the IBC resolution process.

Potential Risks and Audit Concerns

It's important for investors to be aware that Standard Capital Markets received a qualified audit opinion in a recent filing. This was due to non-compliance with IRACP regulations concerning asset classification. Furthermore, the company reported a consolidated net loss for the half-year ended September 30, 2025, largely attributed to an exceptional provision for a sub-standard asset.

Industry Funding Practices

Other prominent NBFCs, such as Muthoot Finance and Manappuram Finance, also issue NCDs, occasionally securing them against receivables. Cholamandalam Investment and Finance Company, another diversified NBFC, indicated that debentures represented approximately 13% of its borrowings as of February 2026, highlighting their role in funding strategies.

Key Investor Focus Areas

Looking ahead, investors will monitor Standard Capital Markets' effectiveness in collecting receivables to meet its remaining debt obligations. Tracking future partial redemptions and the company's overall financial performance, including its capacity to manage provisions and recover from recent losses, will be essential. Assessing how the new repayment structure influences operational efficiency and liquidity management remains a key focus.