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Bond refers to a security issued
by a company,financial institution or government which
offers regular or fixed payment of interest in return
for borrowed money for a certain period of time.
Tax Saving Bonds Capital Gain Bonds with tax benefits under Sec 54EC of Income Tax ActThe schemes currently available in the market which offers tax benefits under Sec 54EC are:-Private Placement of REC 54EC Bonds Rating 'AAA” by CRISIL
| Face Value |
Rs 10,000 /- per bond |
|
Minimum Subscription |
Ten bonds of Rs.10,000/- each and in multiple of one bond thereafter |
Date of allotment |
The date of realization of cheque/draft in the account of REC |
|
Deemed date of allotment |
The last day of the month of the Date of Allotment |
|
Redemption |
At par on the last date of each month 5/7 years |
|
Interest Payment |
Annual 31st March |
| |
Option I |
Option II |
|
Tenure
|
5years |
7years |
|
Coupon rate(above Rs1 Cr) |
5.50% |
5.60% |
|
Put/Call |
At the end of 3 years |
At the end of 5 years |
Private Placement of National Housing Bank 54 EC Bonds
Rating“AAA” by CARE & FITCH
|
Minimum Subscription |
Rs 10,000/- and in multiples thereof |
|
|
Interest Payment |
Annual on 1st April |
|
|
Deemed Date of Allotment |
Last working day of each month |
|
|
Credit rating |
AAA by CARE & ICRA |
| |
Option I |
Option II |
|
Tenure
|
7 years |
5 years |
|
Put/Call |
5 years |
3 years |
|
Coupon rate |
5.50% |
5.35%(< 1cr)
5.45%(> 1cr) |
|
|
|
|
Private Placement of SIDBI 54 EC Bonds
Rating ‘AAA' by CARE
| Face Value |
Rs 10,000 |
|
Minimum Subscription |
Rs10,000 and in multiples of Rs 10,000 thereafter |
|
Date of allotment |
The date of realization of cheque/draft in the account of SIDBI |
|
Deemed date of allotment |
The last day of the month of the Date of Allotment |
|
Mode of Interest Payment |
Annual/ Cumulative |
| |
Option I |
Option II |
|
Tenure
|
3 years |
5years |
|
Coupon rate |
5.40% |
5.40% |
|
Put/Call |
Nil |
At the end of 3 years |
Private Placement of NABARD Capital Gain Bonds
| Face Value |
Rs 10,000 /- per bond |
|
Minimum Subscription |
Rs.10,000/- and in multiple of 10,000 thereafter.
Half-yearly interest option : Rs.500,000/- & above in multiples of Rs, 10,000 thereafter |
Date of allotment |
The date of realization of cheque/draft. |
|
Deemed date of allotment |
The last day of the month of the Date of Allotment |
|
Redemption |
At par on the last date of each month 5/7 years |
|
Interest Payment |
Half-yearly - October 1st
Annual - 31st March
Cumulative – Compounded annually |
| |
Option I |
Option II |
|
Tenure
|
5years |
7years |
|
Coupon rate |
5.40% annual/cumul.
5.33 % semi- annual |
5.50% annual/cumul.
5.43 % semi- annual |
|
Put/Call |
At the end of 3 years |
At the end of 5 years |
Infrastructure Bonds with tax benefits under Sec 88
The schemes currently available
in the market which offer tax benefits under Sec 88
are:-
Private Placement of Power Finance Corporation Ltd. Infrastructure Bonds
Rating 'AAA' by Crisil & 'LAAA”by ICRA
| Face Value |
Rs 10,000 /- per bond |
|
Minimum Subscription |
Rs.10,000/- and in multiple of 10,000 thereafter. |
Date of allotment |
The date of realization of cheque/draft. |
|
Deemed date of allotment |
The last day of the month of the Date of Allotment |
|
Interest Payment |
Annually |
| |
Option I |
Option II |
|
Tenor |
5years |
5years |
|
Coupon rate |
6 % |
- |
|
Put/Call |
At the end of 3 years |
At the end of 3 years |
|
Redemption Value |
Rs.10,000/- |
Rs.11910 after 3 yr.
Rs.13382 after 5 yr. |
|
Yield |
9.95 % |
9.50 % |
|
Tax Benefits |
88 of IT Act, 1961 |
88 of IT Act, 1961 |
Private Placement of Rural Electrification Corporation Ltd Infrastructure Bonds
Rating 'AAA Stable'-Crisil & 'AAA' by CARE & 'AAA(ind) by FITCH
| Face Value |
Rs 5,000 /- per bond |
|
Minimum Subscription |
Rs.5,000/- and in multiple of one bond thereafter. |
Date of allotment |
31-03-2005 |
|
Last date of for submission of application |
25-03-2005 |
|
Interest Payment |
Annually - 31st march |
| |
Option I |
Option II |
|
Tenor |
3 years |
5years |
|
Coupon rate |
6.00 % |
6.25 % |
|
Put/Call |
At the end of 3 years |
At the end of 3 years |
|
Redemption Value |
At par |
At par |
ICICI Bank Tax Saving Bond – Feb. 2005Issue opens on Feb. 28, 2005 and closes on March 09 2005.
Credit Rating: “AAA”; “LAAA” by ICRA; “CARE AAA” by CARE
Issue size : Rs.400 Cr with a right to retain over subscription up to Rs.400 Cr.
TAX SAVING BOND
| |
I |
II |
|
Tax Benefit Available |
Sec 88 |
Sec 88 |
|
Issue Price (Rs.) |
5000/- |
5000/- |
|
Redemption Period |
5 years |
5 years |
|
Face Value |
5000/- |
6700/- |
|
Interest Rate (%) p.a.* |
6.00 |
DDB@ (YTM 6.0*) |
|
Frequency of interest payment |
Annual |
N.A. |
|
Minimum Application |
1 Bond |
1 Bond |
|
Yield to Investor *#>
(including tax benefits) |
10.0 |
9.6 |
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