TAX FREE BONDS..!

During the financial year 2012-13. tax-free, secured, redeemable, non-convertible bonds, aggregating to amounts mentioned below.

Entities Name and Aggregate amount of bonds are...!

National Highways Authority of India Rs. 10,000 crores

Indian Railway Finance Corporation Limited Rs. 10,000 crores

India infrastructure Finance Company Limited Rs. 10,000 crores

Housing and Urban Development Corporation Limited Rs. 5,000 crores

National Housing Bank Rs. 5,000 crores

Power Finance Corporation Rs. 5,000 crores

Rural Electrical Corporation Rs. 5,000 crores

Jawaharlal Nehru Port Trust Rs. 2,000 crores

Dredging Corporation of India Limited Rs. 500 crores

Ennore Port Limited Rs. 1,000 crores

Eligibility.- The following shall be eligible to subscribe to the bonds:-

(1) Retail Individual Investors (RII);

(2) Qualified Institutional Buyers (QIBs);

(3) Corporates;

(4) High Net Worth Individuals (HNIs);

 Tenure of bonds.-

(1) In the case of India Infrastructure Finance Company Limited (IIFCL), the tenure of the bonds shall be for ten, fifteen or twenty years;

(2) in other cases, the tenure of the bonds shall be for ten or fifteen years ;

PAN - Permanent Account Number.- It shall be mandatory for the subscribers to furnish their Permanent Account Number to the issuer;

Rate of interest: There shall be a ceiling on the coupon rates based on the reference Government security (G-sec) rate.

Issue expense & brokerage.-

(1) In the case of private placement, the total issue expense shall not exceed 0.2% of the issue size and in case of public issue it shall not exceed 0.5% of the issue size;

(2) The issue expense would include all expenses relating to the issue like brokerage, advertisement, printing, registration etc.;

(3) The brokerage, in cases of different categories, shall be limited to the following ceilings :-

(a) Qualified Institutional Buyers - 0.05%

(b) Corporates-0.1%

(c) High Net Worth Individuals  - 0.15%

(d) Retail Individual Investors  - 0.75%;

Public issue.-

(1) At least 75% of the aggregate amount of bonds issued by each entity shall be raised through public issue;

(2) 40% of such public issue shall be earmarked for retail investors;

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