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Investment option for debt investors: A look at new instrument for Indians

A closer look at the new investment instrument available for Indian citizens

Business Standard 

Investment outlook stays dim, job scene picks up

The 7.75% savings (taxable) bonds willl be launched on January 10. A closer look at the new instrument available for Indian citizens.

WHO CAN INVEST

* Open to by individuals (including joint holdings) and Hindu undivided families

* NRIs are not eligible to invest in these bonds

SUBSCRIPTION

* Applications for the bonds will be in the form of Bond Ledger Account

* Will be received in the designated branches of agency banks and SHCIL

PERIOD

* Will be on tap till further notice and issued in cumulative and non-cumulative forms

ISSUE PRICE

* To be issued at par that is at Rs 100

* Will be issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof

* Will be issued in demat form (Bond Ledger Account) only

LIMIT OF INVESTMENT

* No maximum limit for in the bonds

TRANSFERABILITY

* Not transferable

* Not tradeable in the secondary market

* Not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions

NOMINATION

* A sole holder or a sole surviving holder of a bond, being an individual, can make a nomination

MATURITY AND RATE OF INTEREST

* Will have a maturity of 7 years carrying interest at 7.75% per annum payable half-yearly

TAX TREATMENT

* Income tax: Interest on the bonds will be taxable under the Income-tax Act, 1961 as applicable according to the relevant tax status of the bond holder

First Published: Sat, January 06 2018. 02:02 IST
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