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IPO RBI BONDS
Postal Schemes
Monthly Income Scheme
Who can open an account
Any individual can either singly or jointly open this
account. It can also be opened by minor who has
attained age of ten years.
How to make deposit
There shall be only one deposit in the account
Limit on Deposit
The minimum deposit required is Rs.6,000 and the
maximum permissible deposit is Rs.3,00,000 for a
single account and Rs.6,00,000 for a joint account.
Return on investment
8% p.a. payable monthly.
Tenure
The tenure of account is 6 years
Premature Withdrawal
The amount deposited can be withdrawn after 3 years.
If the amount is withdrawn before 3 years then 5% of
the amount deposited shall be deducted.
Tax liability
The interest qualifies for deduction under section 80L
up to a maximum limit of Rs.9,000. No TDS is deducted
from interest. The wealth tax exemption is available.
The bonus also qualifies for deduction under section
80L.
Nominations
Nomination facility is available.
NATIONAL SAVING CERFICATE
How to Invest
Lump sum payment to be made at the time of investment.
The certificates are issued in the denomination of
Rs.100, Rs.500, Rs.1,000, Rs.5,000, Rs.10,000 and
other denominations as may be notified by the Central
Government.
Limit on investment
Minimum investment required is Rs.100. There is no
limit on maximum investment.
Period of investment
6 years.
Return on investment
The rate of interest is 8% p.a. compounded
half-yearly, payable on maturity. Rs.100 invested
becomes Rs.160.10 at maturity.
Premature encashment
Premature encashment can be done only in following
circumstances :
- On the death of holder or any of joint holder
- On forfeiture, by a pledge being a Gazetted
Government Officer
- When ordered by court of law.
Place of encashment
The certificate shall be encashable at the Post Office
at which it stands registered. These can be encashed
anywhere in India by getting the same transfered free
of cost.
For transfer request form click here
Who can purchase
Any individual can either singly or jointly minors and
trusts.
Nomination facility
Nomination facility is available.
Tax benefits
The investment amount qualifies for deduction under
section 88 of the Income Tax Act. The interest
accruing annually but deemed to be invested will also
qualify for tax deduction under section 88 of Income
Tax Act. The interest earned is also entitled to
exemption under section 80L of Income Tax Act.
KISAN VIKAS PATRA
Limit of Investment
There is no limit on maximum investment.The minimum
investment is Rs.100
Return on Investment
The investment doubles itself in 8years & 7months The
Kisan vikas patras can be prematurely encashed at any
time after 2 years and six months. For an investment
of Rs. 1000/-, the returns are as per the chart given
below :
|
Period from the date of issue of the Kisan vikas
patras to date of its encashment |
Amount payable inclusive of interest (in Rupees) |
|
1. Two years & six months or more but less than
three years. |
1170.51 |
|
2. Three years or more but less than three years &
six months. |
1207.95 |
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3. Three years & six months or more but less than
four years. |
1267.19 |
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4. Four years or more but less than four years &
six months. |
1310.80 |
|
5. Four years & six months or more but less than
five years. |
1355.90 |
|
6. Five years or more but less than five yaers and
six months. |
1435.63 |
|
7. Five years & six months or more but less than
six years. |
1488.49 |
|
8. Six years or more but less than six years and
six months. |
1543.30 |
|
9. Six years & six months or more but less than
Seven years and three months. |
1649.13 |
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10. Seven years or more but less than seven years
6 months |
1713.82 |
|
11. Seven years six months or more but less than 8
years |
1781.06 |
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12. 8 years or more but less than 8 years 7 months |
1850.93 |
Date of issue of certificate
Where investment is made by cash the date of issue of
Kisan vikas patra will be the date of investment.Where
the investment is made by cheque or draft the date of
issue of Kisan vikas patra will be the date of
realisation of cheque or draft.
Place of encashment
The Kisan vikas patras will be encashable at the Post
Office of its issue or any where in India by getting
the same transferred free of cost.
Who can purchase?
Any individual whether singly or jointly can purchase
the Kisan vikas patras. K.V.P's can also be purchased
in the name of minor.Trusts can also purchase.
Nomination facility
Nomination facility is available.
Tax Liability
The interest paid does not qualify for any tax
concession. No TDS is deducted from interest.
Monthly Income Scheme
Who can open an account
Any individual can either singly or jointly open this
account. It can also be opened by minor who has
attained age of ten years.
How to make deposit
There shall be only one deposit in the account
Limit on Deposit
The minimum deposit required is Rs.6,000 and the
maximum permissible deposit is Rs.3,00,000 for a
single account and Rs.6,00,000 for a joint account.
Return on investment
8% p.a. payable monthly.
Tenure
The tenure of account is 6 years
Premature Withdrawal
The amount deposited can be withdrawn after 3 years.
If the amount is withdrawn before 3 years then 5% of
the amount deposited shall be deducted.
Tax liability
The interest qualifies for deduction under section 80L
upto a maximum limit of Rs.9,000. No TDS is deducted
from interest.The wealth tax exemption is available.
The bonus also qualifies for deduction under section
80L.
Nominations
Nomination facility is available.
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RBI
Relief Bonds 2003
6.5 Savings Bonds, 2003
(Tax Free)
Eligibility Of Investment
The bonds may be held by:-
(i) An individual, not being a Non-Resident India
a) in his or her individual capacity or
b) in individual capacity on joint basis, or
c) in individual capacity on anyone or survivor basis
or
d) on behalf of a minor as father/mother/legal
guardian
(ii) A Hindu Undivided family
Limit of investment
There will be no maximum limit of investment in the
bonds
Tax Concession
The interest on the bonds will be exempt from
income-tax under the Income Tax Act, 1961.
The bonds will be exempt from Wealth-tax under the
Wealth Tax Act 1957.
Issue Price
a) The bonds will be issued at par
b) The bonds will be issued for a minimum amount of Rs.
1000/- (face value) and in multiplies thereof.
Accordingly, the issue price will be Rs. 1000/- for
every 1,000/- (Nominal)
Interest Payments
Half yearly options: Interest will be paid on 1st
January / 1st July.
On Maturity: Compounded with half yearly rates and
will be payable on maturity along with principal
maturity value will be Rs 1,376.90 (being principal
and interest) for every Rs 1,000/- invested.
Subscription
Subscription to the bonds will be in the form of
Cash/Drafts/ Cheques.
Transferability
The bonds in the form of Bond Ledger Account and Stock
Certificate shall not be transferable except by way of
gift to a relative defined in the section of the
Indian Companies Act, 1956, by execution of
appropriate Transfer Form as given in Annexure 6A and
6B (as may be applicable) and an execution of an
affidavit by the holder.
Advances
The Bonds shall not be tradable in the secondary
market shall not be eligible as collateral for loans
from banks, financial institutions and Non-Banking
Financial Company (NBFC) etc.
Repayment
The Bonds shall be repayable on the expiration of 5
(five years) from the date of issue. No interest would
accrue after the maturity of the bond.
Provision for Premature Encashment
After minimum lock in period of 3 years from the date
of issue, an investor can surrender the Bonds at any
time after the 6th half year but redemption payment
will be made on the following interest payment due
date (as indicated below). Thus the effective date of
premature encashment will be 1st July and 1st January
every year. However 50% of the interest due and
payable for the last six months of the holding period
will be recovered in such cases both in respect of
cumulative and Non-cumulative Bonds.
8 % RBI BONDS (Taxable)
1. Eligibility for Investment:
The Bonds may be held by -
(i) an individual, not being a Non-Resident Indian -
(a) in his or her individual capacity, or
(b) in individual capacity on joint basis, or
(c) in individual capacity on anyone or survivor
basis, or
(d) on behalf of a minor as father/mother/legal
guardian
(ii) a Hindu Undivided Family.
(iii) (a)'Charitable Institution' to mean a Company
registered under Section 25 of the Indian Companies
Act 1956 or
(b) an institution which has obtained a Certificate of
Registration as a charitable institution in accordance
with a law in force; or
(c) any institution which has obtained a certificate
from Income Tax Authority for the purposes of Section
80G of the Income Tax Act, 1961.
(iv) "University" means a university established or
incorporated by a Central, State or Provincial Act,
and includes an institution declared under section 3
of the University Grants Commission Act, 1956 (3 of
1956), to be a university for the purposes of that
Act.
2. Limit of Investment:
There will be no maximum limit for investment in the
Bonds.
3. Tax Treatment:
(i) 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.
(ii) Wealth tax: The Bonds will be exempt from
Wealth-tax under the Wealth- tax Act, 1957.
4. Issue Price
(i) The Bonds will be issued at par i.e. at Rs.100.00
percent.
(ii) The Bonds will be issued for a minimum amount of
Rs. 1000/- (face value) and in multiples thereof.
Accordingly, the issue price will be Rs.1000/- for
every Rs.1,000/-(Nominal).
5. Subscription
Subscription to the Bonds will be in the form of
Cash/Drafts/Cheques. Cheques or drafts should be drawn
in favour of the Receiving Office, specified in
paragraph 10 below and payable at the place where the
applications are tendered.
6. Date of Issue
(i) The Bonds will be issued with effect from 21st
April 2003 and will remain on tap till further notice.
(ii) The date of issue of the Bonds in the form of
Bond Ledger Account will be the date of receipt of
subscription in cash or the date of realisation of
draft/cheque.
7. Form
(i) The Bonds will be issued and held at the credit of
the holder in an account called Bond Ledger Account (BLA).
(ii) New Bond Ledger series with the prefix (TB) are
to be opened. All investment in 8% Savings (Taxable)
Bonds by an existing BLA holder will be viewed as a
new investment under a new BLA.
(iii) The Bonds in the form of Bond Ledger Account
will be issued by and held with designated branches of
the agency banks and SHCIL as authorised by Reserve
Bank of India in terms of paragraph 10 below.(iv) The
Certificate of Holding in respect of Bond Ledger
Account will be issued in Form TBX or Form TBY as
applicable for non-cumulative and cumulative
investments respectively.
(v) The Certificate of Holding in respect of cash
applications may be issued on the same day as per the
extant instructions.
8. Nomination
A sole holder or a sole surviving holder of a Bond,
being an individual, may nominate in form B (Annex -
4) or as near thereto as may be, one or more persons
who shall be entitled to the Bond and the payment
thereon in the event of his/her death.
9. Transferability
The Bond in the form of Bond Ledger Account shall not
be transferable.
10. Interest
(i) The bond will be issued in cumulative and
non-cumulative form, at the option of the investor.
(ii) The Bond will bear interest at the rate of 8% per
annum. Interest on non-cumulative bonds will be
payable at half-yearly intervals from the date of
issue in terms of paragraph 7 above. Interest on
cumulative bonds will be compounded with half-yearly
rests and will be payable on maturity along with the
principal. In the latter case, the maturity value of
the Bonds shall be Rs.1601/- (being principal and
interest) for every Rs.1,000/-(Nominal). Interest to
the holders opting for non-cumulative Bonds will be
paid from date of issue in terms of paragraph 7 above
upto 31st July/31st January, as the case may be and
thereafter at half-yearly for period ending 31st
July/31st January on 1st August and 1st February.
Interest on Bond in the form of "Bond Ledger Account"
will be paid, by cheque/warrant or through ECS by
credit to bank account of the holder as per the option
exercised by the investor/holder.
11. Advances/Tradeability against Bonds
The Bonds shall not be tradeable in the secondary
market and shall not be eligible as collateral for
loans from banks, financial Institutions and Non
Banking Financial Companies, (NBFC) etc.15. Repayment
The Bonds shall be repayable on the expiry of 6 (Six)
years from the date of issue. No interest would accrue
after the maturity of the Bond.
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IPO
IPO stands for Initial Public
Offer where there is an invitation by the company to
the public to subscribe to the securities offered
through a prospectus. In other words, the general
public can participate in the shareholdings of the
company?s share.Securities and Exchange Board Of India
(SEBI) is the nodal authority for all capital market
activities including public issues. All companies
wishing to come out with an IPO has to file the draft
offer document with SEBI through a merchant banker.
A. Public constitutes of both institutional and non
institutional investors.
Institutional investors constitutes of:
A Foreign institutional investors (FII?S)
B Mutual funds (MF?S)
C Public sector banks
D Private sector banks
E Domestics institutions (FI?S)
F OCB?s
G Corporates
Non-Institutional constitutes of:
A Inddian and NRI Investors
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FIXED DEPSOITS
Fixed deposits are normally
unsecured loans issued by corporates, banks ,financial
institutions and others.
The companies to fund their short
term requirements or other financial requirements
borrows from the general public and provides a better
rate than the banks.
The company enters into a contract with the depositor,
wherein the company has an
obligation to pay the interest payment & principal at
a pre-determined time & at a pre- specified rate
The main difference between a
fixed deposit and a bond is, the bonds are
transferable instruments whereas fixed deposits are
non transferable. Hence apart from interest earnings
fixed deposits cannot offer capital appreciation as
the same can be surrendered only to the issuer before
its maturity.
In case of a premature withdrawal
by the depositor, the depositor gets his capital back
at a 1% lesser rate than the contracted rate. The
premature withdrawal is only possible after a minimum
holding of six months. The company fixed deposits in
India are governed by the company law board and the
Reserve Bank of India
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