The Central government, in exercise of its powers conferred under Section 10 (15) (iv) (h) of the Income tax Act, 1961, has authorized the above entities to issue tax-free, secured, redeemable, non-convertible bonds of an aggregate amount of Rs. 48,000 Cr. during the FY2013-14.
Some of the public undertakings that will be raising funds are REC, IIFCL, PFC, HUDCO, NHB, NHAI, NTPC, NHPC, IRFC, IREDA, AAI and Cochin Shipyard.
- Period option : Choice of 10 years, 15 years & 20 years
- Proposed to be listed on NSE / BSE
- Bond Issues are Secured in nature, hence safe investment
- Either in Demat or Physical form
- PAN is Mandatory
- Tax-Free interest income
- Low risk, since companies have a better credit rating
- Listing of bonds on various exchanges can provide liquidity to your investments
- Option of holding bonds in 'Demat Form' makes your investments easy to handle & monitor
- Ratings by agencies like CARE, FITCH, CRISIL, ICRA