{"id":13352,"date":"2026-05-08T20:29:40","date_gmt":"2026-05-08T20:29:40","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=13352"},"modified":"2026-05-08T10:32:26","modified_gmt":"2026-05-08T10:32:26","slug":"market-linked-debentures","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/","title":{"rendered":"Market-Linked Debentures Post Sebi Reclassification: What Changed For Investors"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Between 2018 and 2022, market-linked debentures raised a total of Rs. 83,000 crores in India<\/span><span style=\"font-weight: 400;\">. The appeal of MLDs for investors was primarily driven by favourable tax treatment. Earlier, equity taxation rules applied to listed MLDs, and LTCG was charged at 10% for a holding period of over 12 months.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, this changed in 2023 with SEBI\u2019s market-linked debenture reclassification. Effective 1st April 2023, MLD capital gains are taxed as short-term gains at slab rates. This change of MLD taxation in India has significantly impacted investors, specifically HNIs and family offices that invested in MLDs for the tax advantage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(source: <\/span><a href=\"http:\/\/efaidnbmnnnibpcajpcglclefindmkaj\/https:\/\/fidcindia.org.in\/wp-content\/uploads\/2019\/06\/FIDC-F-M-MLD-15-02-23.pdf\"><span style=\"font-weight: 400;\">FIDC<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#What_are_Market-Linked_Debentures\" >What are Market-Linked Debentures?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#Market-Linked_Debentures_SEBI_2023_MLD_Taxation_Change\" >Market-Linked Debentures: SEBI 2023 MLD Taxation Change<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#MLD_Taxation_in_India_What_Changed_for_Investors\" >MLD Taxation in India: What Changed for Investors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#Understanding_Changes_in_MLD_Taxation_An_Example\" >Understanding Changes in MLD Taxation: An Example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#MLDs_Vs_NCDs_What_Investors_May_Consider_Now\" >MLDs Vs. NCDs: What Investors May Consider Now?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#So_MLD_Taxation_No_Longer_Has_LTCG_Benefits\" >So, MLD Taxation No Longer Has LTCG Benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_are_Market-Linked_Debentures\"><\/span><b>What are Market-Linked Debentures?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before we proceed to SEBI\u2019s 2023 market-like debenture revisions, let\u2019s understand the meaning of MLDs first. MLDs are structured, fixed-income securities where the returns depend on the performance of the underlying market asset or benchmark linked with them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MLDs may be linked to benchmark the Nifty 50, Sensex, the 10-year G-Sec yields, or prices of commodities like gold. The offer document of the MLD outlines the specifics of the underlying security and its performance requirements when issuing the MLD.<\/span><\/p>\n<p><b>Key features of MLDs in India:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Only principal-protected MLDs are issued in India, meaning the issuer repays the principal, even if the underlying asset doesn\u2019t perform well.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MLDs typically have a tenure of 1 to 5 years in India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Returns from MLDs are not guaranteed and depend on the performance of the underlying index or asset.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MLDS in India can be listed or unlisted.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit agencies rate MLDs (just like bonds) to help investors understand the creditworthiness of the issuer.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Market-Linked_Debentures_SEBI_2023_MLD_Taxation_Change\"><\/span><b>Market-Linked Debentures: SEBI 2023 MLD Taxation Change<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of the main advantages of MLDs was their favourable taxation benefits. But in 2023, SEBI changed market-linked debenture taxation rules, and as an investor, you must know about these changes:<\/span><\/p>\n<h3><b>What Were the Earlier Rules on MLD Taxation in India?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Before 2023, MLDs were treated as capital assets. This meant MLDs had equity taxation rules where:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If they were held for more than 12 months, capital gains were subject to Long-Term Capital Gains (LTCG)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">LTCG on listed securities was taxed at 10% (above \u20b91 lakh)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This made MLDs highly tax-efficient compared to other fixed-income options.<\/span><\/p>\n<h3><b>What changed in 2023?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With Budget 2023, the MLD taxation in India changed completely. According to these new rules, SEBI reclassified market-linked debentures as any other debt instrument.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That&#8217;s why, now:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MLD capital gains are taxed as short-term capital gains\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The concessional LTCG rate is no longer applicable<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Returns are added to your income and taxed at the applicable income tax slab (which can be as high as 30%)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Simply put, MLD capital gains were earlier taxed like stocks. But after the 2023 taxation amendment, MLD capital gains are now taxed like bonds and other fixed-income investments.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"MLD_Taxation_in_India_What_Changed_for_Investors\"><\/span><b>MLD Taxation in India: What Changed for Investors?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Tax changes introduced by SEBI\u2019s 2023 market-linked debenture revision have a significant impact on investors, especially those who were using MLDs for tax efficiency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how MLD taxation changes from 2023 may impact you:<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Lower Post-Tax Returns\u00a0<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Earlier, capital gains from MLDs were taxed at a flat rate of 10% if the units were held for more than 12 months. This LTGC rate would mean a higher post-tax yield.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, with SEBI\u2019s 2023 MLD taxation amendment, gains are taxed at slab rates. This means your MLD capital gains may be taxed up to 30% if you fall in the highest tax bracket.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since MLDs were always preferred by HNIs (who typically fall in the highest tax brackets), this can significantly impact their effective return from the investment.\u00a0\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Reduced Tax Advantage<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Investors often preferred MLDs because of the tax advantage they brought to the table over other fixed-income investments, like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fixed deposits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vanilla non-convertible debentures (NCDs)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, with SEBI\u2019s 2023 revision of MLD taxation in India, this advantage has almost disappeared. With that advantage removed, the difference between MLDs and other debt products has narrowed.<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Greater Focus on Risk Vs. Reward<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Earlier, MLDs were often chosen for their tax efficiency. But with that advantage removed, investors need to evaluate them more carefully on fundamentals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While many MLDs are structured to be principal-protected, this protection still depends on the issuer\u2019s creditworthiness.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, investors now need to focus more on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The underlying market risk linked to returns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The credit quality of the issuer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the post-tax returns justify the complexity and risk<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Changes_in_MLD_Taxation_An_Example\"><\/span><b>Understanding Changes in MLD Taxation: An Example<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s understand how changes in MLD capital gains taxation impact investors with an example. Let\u2019s say you invest Rs. 10 lakhs in an MLD with a 15-month tenure. The MLD offers you a return of 10% over the investment period. At maturity, your MLD capital gains stand at Rs. 1 lakh.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, under the earlier MLD taxation rules in India, your gains would be taxed at 10%, since the holding period was more than 12 months. This means:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax on Rs. 1 lakh = Rs. 10,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Post-tax return = Rs. 90,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Effective return = 9%<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Now, if the same investment were to be taxed as per your income slab (as per SEBI\u2019s 2023 market-linked debenture taxation amendment), things will change.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s say you fall under the 30% tax bracket. In this case, your MLD capital gains taxation will look like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax on Rs. 1 lakh = Rs. 30,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Post-tax return = Rs. 70,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Effective return = 7%<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">So, even though the pre-tax return remains the same, the post-tax outcome is significantly lower, which directly impacts the overall attractiveness of the investment.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"MLDs_Vs_NCDs_What_Investors_May_Consider_Now\"><\/span><b>MLDs Vs. NCDs: What Investors May Consider Now?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Investors have always compared MLDs and NCDs to choose an option that\u2019s most favourable for them. With changes in MLD taxation in India, this comparison becomes even more important, and frankly, easier.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Earlier, MLD tax advantages gave these investment vehicles an edge over vanilla NCDs. However, post SEBI\u2019s 2023 market-linked debenture reclassification, both MLDs and NCDs are now taxed similarly &#8211; at slab levels.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So now the MLD vs. NCD debate is mostly focused on risks, potential returns, and structure:<\/span><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<tbody>\n<tr>\n<td><b>Factor<\/b><\/td>\n<td><b>MLDs\u00a0<\/b><\/td>\n<td><b>NCDs<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Return Type<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Market-linked returns<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Fixed returns based on a coupon rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Return Visibility<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Not guaranteed upfront<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Known at the time of investment<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Risk<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Credit risk + market risk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Primarily credit risk<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Complexity<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Higher, depending on the structure<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Low, easy to understand<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Tax Treatment<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Taxed as per the income slab<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Taxed as per the income slab<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Suitability<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Investors who are comfortable with structured products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Investors who are seeking stable income<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<h2><span class=\"ez-toc-section\" id=\"So_MLD_Taxation_No_Longer_Has_LTCG_Benefits\"><\/span><b>So, MLD Taxation No Longer Has LTCG Benefits<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">SEBI\u2019s reclassification of market-linked debentures as other debt assets has brought significant changes for investors:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MLD capital gains were taxed as listed equity shares at 10% LTCG for holdings of over 12 months.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Post 2023, MLD capital gains are taxed as short-term gains at slab rates.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Taxation at slab rates may mean a higher tax outflow for investors in higher tax brackets.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This doesn\u2019t mean MLDs have lost their appeal. It simply means you now have to evaluate them with any other fixed-income asset to understand if the risk is worth the potential returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors looking for simple and predictable income from fixed-income assets can consider high-quality bonds or NCDs from GoldenPi. You can visit the <\/span><a href=\"https:\/\/goldenpi.com\/\"><span style=\"font-weight: 400;\">GoldePi <\/span><\/a><span style=\"font-weight: 400;\">website to choose from different baskets and make your investment.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><b>FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>What is the minimum investment amount required for MLDs in 2026?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Effective from 1st April 2023, the minimum investment amount required for MLDs in India is Rs. 1 lakh. This minimum entry amount was reduced by SEBI to encourage more retail participation.\u00a0<\/span><\/p>\n<h3><b>Which should I choose: MLDs vs. NCDs?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With the tax advantage of MLDs gone, both instruments have the same tax treatment now (at slab rates). So the choice between these two depends on your risk appetite, income expectations, and understanding of the instrument.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, you may consider NCDs if you prefer a stable income at fixed coupon rates, since MLD returns depend on the performance of the underlying asset and set requirements.\u00a0<\/span><\/p>\n<h3><b>What are the risks associated with MLDs?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">MLDs carry various risks, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market risk:<\/b><span style=\"font-weight: 400;\"> Returns from these investments are not guaranteed and depend on certain conditions, making them vulnerable to market risks.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Credit risk: <\/b><span style=\"font-weight: 400;\">The principal repayment depends on the issuer\u2019s creditworthiness.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Liquidity risk: <\/b><span style=\"font-weight: 400;\">Liquidity risk is high for MLDs as it is difficult to find buyers in the secondary market.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Disclaimer:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This information is for general information purposes only. GoldenPi makes no guarantee on the accuracy of the data provided here; the information displayed is subject to change and is provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. Investments in the securities market are subject to market risks. Read all the offer-related documents carefully before investing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bonds or non-convertible debentures (NCDs) are regulated by the Securities and Exchange Board of India and other government authorities. GoldenPi Securities Private Limited is a registered debt broker and acts as a distributor and not as a manufacturer of the product.<\/span><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@graph\": [\n    {\n      \"@type\": \"BlogPosting\",\n      \"@id\": \"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#blogposting\",\n      \"mainEntityOfPage\": \"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/\",\n      \"headline\": \"Market-Linked Debentures After SEBI 2023: Taxation Changes and Investor Impact\",\n      \"description\": \"Understand how SEBI\u2019s 2023 reclassification changed Market-Linked Debentures (MLDs) taxation in India and whether MLDs still make sense for investors in India.\",\n      \"image\": \"https:\/\/goldenpi.com\/blog\/wp-content\/uploads\/mld-taxation-changes.jpg\",\n      \"author\": {\n        \"@type\": \"Person\",\n        \"name\": \"Kunal Arora\",\n        \"url\": \"https:\/\/goldenpi.com\/blog\/author\/kunal-arora\/\",\n        \"worksFor\": {\n          \"@id\": \"https:\/\/goldenpi.com\/\"\n        }\n      },\n      \"publisher\": {\n        \"@id\": \"https:\/\/goldenpi.com\/\"\n      },\n      \"about\": [\n        {\n          \"@type\": \"FinancialProduct\",\n          \"@id\": \"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/\",\n          \"name\": \"Market Linked Debenture\",\n          \"alternateName\": \"MLD\",\n          \"description\": \"Structured fixed-income securities where returns are tied to the performance of underlying market assets or benchmarks like Nifty 50 or G-Sec yields.\",\n          \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Market-linked_debenture\"\n        }\n      ],\n      \"mentions\": [\n        {\n          \"@type\": \"GovernmentOrganization\",\n          \"name\": \"Securities and Exchange Board of India\",\n          \"alternateName\": \"SEBI\",\n          \"sameAs\": [\n            \"https:\/\/www.sebi.gov.in\/\",\n            \"https:\/\/en.wikipedia.org\/wiki\/Securities_and_Exchange_Board_of_India\",\n            \"https:\/\/www.wikidata.org\/wiki\/Q3521019\"\n          ]\n        },\n        {\n          \"@type\": \"FinancialProduct\",\n          \"name\": \"Non-Convertible Debentures\",\n          \"alternateName\": \"NCD\",\n          \"sameAs\": \"https:\/\/en.wikipedia.org\/wiki\/Debenture#India\"\n        },\n        {\n          \"@type\": \"Thing\",\n          \"name\": \"Long-term capital gains tax\",\n          \"alternateName\": \"LTCG\",\n          \"sameAs\": [\n            \"https:\/\/en.wikipedia.org\/wiki\/Capital_gains_tax_in_India\",\n            \"https:\/\/www.wikidata.org\/wiki\/Q5035706\"\n          ]\n        }\n      ]\n    },\n    {\n      \"@type\": \"FAQPage\",\n      \"@id\": \"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#faq\",\n      \"mainEntity\": [\n        {\n          \"@type\": \"Question\",\n          \"name\": \"What is the minimum investment amount required for MLDs in 2026?\",\n          \"acceptedAnswer\": {\n            \"@type\": \"Answer\",\n            \"text\": \"Effective from 1st April 2023, the minimum investment amount required for MLDs in India is Rs. 1 lakh. This minimum entry amount was reduced by SEBI to encourage more retail participation.\"\n          }\n        },\n        {\n          \"@type\": \"Question\",\n          \"name\": \"Which should I choose: MLDs vs. NCDs?\",\n          \"acceptedAnswer\": {\n            \"@type\": \"Answer\",\n            \"text\": \"With the tax advantage of MLDs gone, both instruments have the same tax treatment (at slab rates). NCDs are preferable if you seek stable income at fixed coupon rates, whereas MLD returns depend on the performance of the underlying asset.\"\n          }\n        },\n        {\n          \"@type\": \"Question\",\n          \"name\": \"What are the risks associated with MLDs?\",\n          \"acceptedAnswer\": {\n            \"@type\": \"Answer\",\n            \"text\": \"MLDs carry various risks including Market risk (returns are not guaranteed), Credit risk (repayment depends on issuer creditworthiness), and Liquidity risk (difficult to find buyers in the secondary market).\"\n          }\n        }\n      ]\n    },\n    {\n      \"@type\": \"Table\",\n      \"@id\": \"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#comparison-table\",\n      \"name\": \"MLDs Vs. NCDs Comparison Table\",\n      \"about\": \"Comparison of Market-Linked Debentures and Non-Convertible Debentures\",\n      \"mainEntity\": {\n        \"@type\": \"ItemList\",\n        \"itemListElement\": [\n          {\n            \"@type\": \"ListItem\",\n            \"position\": 1,\n            \"name\": \"Return Type\",\n            \"item\": { \"@type\": \"Thing\", \"description\": \"MLDs: Market-linked returns | NCDs: Fixed returns based on coupon rate\" }\n          },\n          {\n            \"@type\": \"ListItem\",\n            \"position\": 2,\n            \"name\": \"Risk\",\n            \"item\": { \"@type\": \"Thing\", \"description\": \"MLDs: Credit risk + market risk | NCDs: Primarily credit risk\" }\n          },\n          {\n            \"@type\": \"ListItem\",\n            \"position\": 3,\n            \"name\": \"Tax Treatment\",\n            \"item\": { \"@type\": \"Thing\", \"description\": \"Both: Taxed as per income slab\" }\n          }\n        ]\n      }\n    },\n    {\n      \"@type\": \"Organization\",\n      \"@id\": \"https:\/\/goldenpi.com\/#organization\",\n      \"name\": \"GoldenPi\",\n      \"url\": \"https:\/\/goldenpi.com\/\",\n      \"logo\": {\n        \"@type\": \"ImageObject\",\n        \"url\": \"https:\/\/d2tfvseypdp8pf.cloudfront.net\/assets\/img\/logo.svg\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Between 2018 and 2022, market-linked debentures raised a total of Rs. 83,000 crores in India. The appeal of MLDs for investors was&hellip;<\/p>\n","protected":false},"author":16,"featured_media":13379,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[25],"tags":[990,991],"class_list":["post-13352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bond-news","tag-bond-marketm-market-link-debentures","tag-mld-taxation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Market-Linked Debentures After SEBI 2023: Taxation Changes and Investor Impact<\/title>\n<meta name=\"description\" content=\"Understand how SEBI\u2019s 2023 reclassification changed Market-Linked Debentures (MLDs) taxation in India and whether MLDs still make sense for investors in India.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market-Linked Debentures After SEBI 2023: Taxation Changes and Investor Impact\" \/>\n<meta property=\"og:description\" content=\"Understand how SEBI\u2019s 2023 reclassification changed Market-Linked Debentures (MLDs) taxation in India and whether MLDs still make sense for investors in India.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/\" \/>\n<meta property=\"og:site_name\" content=\"GoldenPi | Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldenpitech\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-08T20:29:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08103054\/Market-Linked-Debentures-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"2320\" \/>\n\t<meta property=\"og:image:height\" content=\"1101\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Kunal Arora | CA\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:site\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kunal Arora | CA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/\",\"url\":\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/\",\"name\":\"Market-Linked Debentures After SEBI 2023: Taxation Changes and Investor Impact\",\"isPartOf\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08103054\/Market-Linked-Debentures-1.png\",\"datePublished\":\"2026-05-08T20:29:40+00:00\",\"author\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/d3fccd8baf9a3fda41c1c5356272ce8d\"},\"description\":\"Understand how SEBI\u2019s 2023 reclassification changed Market-Linked Debentures (MLDs) taxation in India and whether MLDs still make sense for investors in India.\",\"breadcrumb\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#primaryimage\",\"url\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08103054\/Market-Linked-Debentures-1.png\",\"contentUrl\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08103054\/Market-Linked-Debentures-1.png\",\"width\":2320,\"height\":1101,\"caption\":\"Market Linked Debentures\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/goldenpi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Market-Linked Debentures Post Sebi Reclassification: What Changed For Investors\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#website\",\"url\":\"https:\/\/goldenpi.com\/blog\/\",\"name\":\"GoldenPi | Blogs\",\"description\":\"All about bonds online in India\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/goldenpi.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/d3fccd8baf9a3fda41c1c5356272ce8d\",\"name\":\"Kunal Arora | CA\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/goldenpi.com\/blog\",\"contentUrl\":\"https:\/\/goldenpi.com\/blog\",\"caption\":\"Kunal Arora | CA\"},\"description\":\"Kunal Arora is a Chartered Accountant and finance expert with over 8 years of expertise in navigating the complex financial heart of India\u2019s leading NBFCs. As a Financial Controller at Oxyzo, Kunal focuses on the core pillars of financial integrity - transparency, regulatory excellence and the strategic reporting that builds investor trust.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/ca-kunal-arora-005299158\/\"],\"url\":\"https:\/\/goldenpi.com\/blog\/author\/kunal-arora\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Market-Linked Debentures After SEBI 2023: Taxation Changes and Investor Impact","description":"Understand how SEBI\u2019s 2023 reclassification changed Market-Linked Debentures (MLDs) taxation in India and whether MLDs still make sense for investors in India.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/","og_locale":"en_US","og_type":"article","og_title":"Market-Linked Debentures After SEBI 2023: Taxation Changes and Investor Impact","og_description":"Understand how SEBI\u2019s 2023 reclassification changed Market-Linked Debentures (MLDs) taxation in India and whether MLDs still make sense for investors in India.","og_url":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/","og_site_name":"GoldenPi | Blogs","article_publisher":"https:\/\/www.facebook.com\/goldenpitech","article_published_time":"2026-05-08T20:29:40+00:00","og_image":[{"width":2320,"height":1101,"url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08103054\/Market-Linked-Debentures-1.png","type":"image\/png"}],"author":"Kunal Arora | CA","twitter_card":"summary_large_image","twitter_creator":"@GoldenPiTech","twitter_site":"@GoldenPiTech","twitter_misc":{"Written by":"Kunal Arora | CA","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/","url":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/","name":"Market-Linked Debentures After SEBI 2023: Taxation Changes and Investor Impact","isPartOf":{"@id":"https:\/\/goldenpi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#primaryimage"},"image":{"@id":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#primaryimage"},"thumbnailUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08103054\/Market-Linked-Debentures-1.png","datePublished":"2026-05-08T20:29:40+00:00","author":{"@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/d3fccd8baf9a3fda41c1c5356272ce8d"},"description":"Understand how SEBI\u2019s 2023 reclassification changed Market-Linked Debentures (MLDs) taxation in India and whether MLDs still make sense for investors in India.","breadcrumb":{"@id":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#primaryimage","url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08103054\/Market-Linked-Debentures-1.png","contentUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/05\/08103054\/Market-Linked-Debentures-1.png","width":2320,"height":1101,"caption":"Market Linked Debentures"},{"@type":"BreadcrumbList","@id":"https:\/\/goldenpi.com\/blog\/bond-news\/market-linked-debentures\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldenpi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Market-Linked Debentures Post Sebi Reclassification: What Changed For Investors"}]},{"@type":"WebSite","@id":"https:\/\/goldenpi.com\/blog\/#website","url":"https:\/\/goldenpi.com\/blog\/","name":"GoldenPi | Blogs","description":"All about bonds online in India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldenpi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/d3fccd8baf9a3fda41c1c5356272ce8d","name":"Kunal Arora | CA","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/goldenpi.com\/blog","contentUrl":"https:\/\/goldenpi.com\/blog","caption":"Kunal Arora | CA"},"description":"Kunal Arora is a Chartered Accountant and finance expert with over 8 years of expertise in navigating the complex financial heart of India\u2019s leading NBFCs. As a Financial Controller at Oxyzo, Kunal focuses on the core pillars of financial integrity - transparency, regulatory excellence and the strategic reporting that builds investor trust.","sameAs":["https:\/\/www.linkedin.com\/in\/ca-kunal-arora-005299158\/"],"url":"https:\/\/goldenpi.com\/blog\/author\/kunal-arora\/"}]}},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/13352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/comments?post=13352"}],"version-history":[{"count":3,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/13352\/revisions"}],"predecessor-version":[{"id":13355,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/13352\/revisions\/13355"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media\/13379"}],"wp:attachment":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media?parent=13352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/categories?post=13352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/tags?post=13352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}