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Thursday, March 1, 2012

REC Tax Free Bond -Issue open 6 Mar. 12


If you miss the recent NHAI , PFC ,HUDCO & IRFC or get good return from these bonds
Now another opportunity for value Investor
 Rural Electrification Corporation  Tax Free Bonds
Issue may be oversubscribe within 2-3  days because retail investor sell old bond and investing in this bond. If you are interest to invest in this REC Tax free bond fill application on first day of issue open.
REC Tax bond size compare to low only 3000 Cr.
REC TAX FREE BONDS -  Retail Limit extended to Rs. 5 lacs.


Tax Benefit

The income by way of interest on these bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under section 10(15) (iv) (h) of Income Tax Act, 1961.
No TDS deduction
Wealth Tax is not levied

 Please note Issue Highlights and difference with earlier Tax Free Bonds issuance
  • Individual and HUF applicants applying for any amount up to Rs 5 Lac will be classified under Retail Category
  • Individual and HUF Applicants applying above 1 Lac will be classified under HNI Category. 
  •  NRI applicants are not allowed 
  • Issuance : Demat form only , no physical certificate issue in this issue

Term of Issue

ParticularsREC TAX FREE BOND
Issue SizeRs. 3000 Cr.
Issue Open 6 Mar 2012
Issue Close12 Mar 2012
Face Value1000
Minimum Application5 bond or 5000
RatingAAA by CRISIL, CARE, ICRA
Tenure10 yr15 yr
Application upto 5 Lakh (Retail & HUF)8.13%8.32%
App. more than 5 Lakh ( QIB, HNI, Corp)7.93%8.12%
Listing   BSE
Interest PaymentPayble  Annually Only
IssuanceDemant only
*** Retail Investor can apply for only 1 lakh (limit reduce by sebi from 5 lakh to 1 lakh)
Allotment Basis :
 on first come first serve basis to be determined on the basis of date of receipt of application duly ackonowledged by Banker to the Issue

Cheque Details :       "      REC Tax Free Bond - Escrow Account"
Bankers           :    Axis Bank, HDFC , ICICI , Indusind , SBI, Yes Bank


Document Required for Application Process :

1 .  To Apply in Demat Form
  • Cheque or DD
  • Pan Card Copy
  • Cancelled Cheque
All Document Self attested  

For REC Tax Free Bond  Application Form Mail me

Investor want to Invest in this Issue :  Call   Rajendra  8007750904  or 
mail - bonanza42a@yahoo.in 

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6 comments:

bhunesh on March 2, 2012 at 9:35 AM said...

sir kindly check i think the rate of intrest which you have given is wrong its is 7.93 and 8.15.
regds
bhunesh

rajendra t on March 2, 2012 at 2:34 PM said...

May be you are right.
It's Tentative rate. Final rate not disclosed yet
If any changes, I am try to updating instantly.

rajendra t on March 2, 2012 at 8:33 PM said...

Gsec yield on the reference rate of 29th February 2012 will be taken. The 10 year G-Sec yields on 29th February 2012 stood at 8.26% semi annual or 8.43% annual. The cap on the annual coupon on the 10 year bond would be 7.93% for public issue. If the coupon gets set at this level, the returns are equivalent to pre tax yields of

•11.74% for corporate investors

•12.04% for Individuals and HUF

Anonymous said...

Is there a lock in period as well in the REC bond?

rajendra t on March 9, 2012 at 11:53 PM said...

No Lock-in period for Tax Free Bond.
Bonds can be purchased or sold on exchanges(BSE/NSE) any time at the current trading prices.

Anonymous said...

WHAT IS THE STATUS OF REC INFR. BONDS ALLOTMENT PLEASE.H O SHARMA

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