Bond Issuers Plan Interest Sop

L&T and Tisco are paying interest on application money, while Industrial Development Bank of India, gearing up to launch the largest-ever pure debt instrument in the domestic market, is planning to offer interest to the early subscribers to compensate for the withdrawal of early bird incentives.

IDBI,which has got the clearance for the Rs 1,000-crore issue with a 100 per cent greenshoe option, will move the Sebi with the plan of offering interest to the early subscribers in the next couple of days. Sebi has already directed the development financial institution to do away with early bird incentives to the investors.

 

Both L&T and Tisco have received the Sebi approval to offer interest on application money for the period between the deemed date and the allotment of certificate.

This is for the first time investors are being offered interest on application money despite receiving the certificate within the Sebi stipulated period