Icici Launches Safety Bonds

The Industrial Credit and Investment Corporation of India Ltd (ICICI) yesterday announced the issue of tax saving "safety bonds" worth Rs 400 crore for household investors.

"We will be offering for public subscription, unsecured redeemable bonds in the nature of debentures aggregating Rs 400 crore with a right to retain oversubscription of up to Rs 400 crore," an Industrial Credit and Investment Corporation of India official told a press conference here. Stating that full and firm allotment will be assured for all valid applicants of the tax saving bond, the official said by investing in Industrial Credit and Investment Corporation of India bonds, investors can choose to save tax under various sections of the tax laws.

 

Industrial Credit and Investment Corporation of India proposes to take steps to ensure that small investors have a guaranteed exit option in case they wish to sell the bonds, the official said.

The financial institution is offering safety bonds of three types namely tax saving bond, regular income bond and money multiplier bond (in the nature of deep discount bond).