Market Linked Debentures (MLDs)

Market Linked Debentures (MLDs) are debt instruments where the payout at maturity is linked to the performance of a specific index or benchmark. Instead of offering a fixed interest rate, the final return is determined by a predefined formula based on how the underlying indicator behaves during the investment period.

MLDs come with a fixed tenure, clearly defined terms, and structure-based conditions that are communicated upfront. They are usually issued by financial institutions and are listed on the exchange, offering transparency in their structure.