Personal Finance Blog India –

REC-Tax Free Bonds Dec 2012:

REC India will issue tax free bonds in December 2012.Central Govt have authorized REC to issue tax free bonds upto Rs. 5000/- Crore wide notification dated Nov 06, 2012

Details of REC – Tax Free Bonds Dec 2012 are as follow:

  1. Issue Name – REC Tax Free Bonds.
  2. Issue Size – Bonds Aggregating upto Rs.1000 Crore with an option to retain over-subscription upto the Shelf Limit – 4500/- Crore.
  3. Face Value – Rs.1000/-.

Important Dates –

  • Issue Open Date – Dec 03, 2012.
  • Issue Close Date – Dec 10, 2012.

Coupon Rates –

Options Tranche -1 Series –I Tranche -1 Series -II
Tenure 10 Yrs 15 Yrs
Interest Payment Frequency Annual Annual
Coupon rate % For Cateogary – I,II , III 7.22 7.38
Additional Coupon Rates – Cateogary IV 0.50% 0.50%
Effective Yield for Cateogary-IV Applicants 7.72% 7.88%

Category-Wise Reservations –

Category I II III IV
Type Of Investor QIB NII HNI RII
Reservation % 30 15 15 40
Allotment on the basis of First Come First Served basis.
HNI – who are applying for more than 10 lakh
RII – Applying for not more than Rs.10 Lakh

Other Details – REC Tax Free Bonds Dec 2012

  • Min Application Amount – Rs 5000/- Or o5 Bonds.
  • Credit Rating – AAA By CRISIL, ICRA, CARE.
  • Mode Of allotment- Demat as well Physical mode as opted by the investor.

Good thing is that applicants do not having demat accounts can also apply for this issue.

Interest received from these bonds will be free from income tax and won’t be part of any income.

Category: Fixed Income


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