FW: Key Highlights - Tax Free Bonds Notification -FY 2013 - 14

Friends, This info is really Interesting if you are in 20% OR 30% of tax slab and want some secure returns … J

 

Best Regards,

Chirag Gandhi

“We do not inherit the earth from our ancestors; we borrow it from our children.”

~~~ Native American Proverb

 

Sent: Monday, August 12, 2013 12:08 PM
Subject: Key Highlights - Tax Free Bonds Notification -FY 2013 - 14

 

Current Offerings with Online form > http://www.oxyzen.co.in/html/current_nfo.htm

 

Dear All,

 

 

The key highlights of the CBDT notification dated 8^th August 2013 regarding Tax Free Bonds - FY 2013 - 14:

 

1. The following entities have got with the below stated limits for raising out funds through tax free bonds in the Current FY:

 

Sr No.	Entities	Allocated Amount of Bonds (Rs. In Crores)
1	Cochin Ship yard Ltd.	250
2	Ennore Port Limited	500
3	Airport Authority of India Ltd.	500
4	India Infrastructure Finance Company Limited	10000
5	Indian Renewable Energy Development Agency Limited	1000
6	Housing & Urban Development Corporation	5000
7	Rural Electrification Corporation Ltd.	5000
8	National Housing Bank	3000
9	Power Finance Corporation Ltd.	5000
10	Indian Railway Finance Corporation Ltd.	10000
11	National Highways Authority of India	50000
12	NHPC Ltd.	1000
13	NTPC	1750

2. Categories

Retail (shall include Individual Investors, HUF, & NRI applying upto Rs. 10 Lakhs)

High Net worth Individuals(shall include Individual Investors, HUF, & NRI applying above Rs. 10 Lakhs)

Corporate

QIB

3. Tenure: 10,15 & 20 Years.

 

4. Coupon Rates:

A. The ceiling coupon rate for AAA Rated Company

Category	Coupon Rate
Retail Individual Investors	*Reference G Sec rate Less 55 basis points
QIB/Corporate/ HNI	*Reference G Sec rate Less 80 basis points

 

# The higher ROI available to retail will not be available if the bonds are transferred by RII to Non Retail.

 

B. The ceiling coupon rate for “AA+” Rated Company – The ceiling coupon shall be 0.10% above the ceiling for AAA Rated entities.

 

C. The ceiling coupon rate for “AA” or “AA-” Rated Company – The ceiling coupon shall be 0.20% above the ceiling for AAA Rated entities.

 

* The reference G Sec = Average of the base yield of G Sec for Equivalent Maturity as per FIMMDA on a daily basis prevailing for two weeks ending on Friday immediately preceding the filing of ROC in case of Public Issue.

 

5.  Public Issue: 70% of aggregate amount bond issued by each entity shall be raised through Public issue; 40% of public issue shall be reserved for retail.

 

6. Issue Expense cap: For Private Placement- 0.25%, For Public issue-0.65%.