REC Tax Free Bonds

REC Tax Free Bonds Public Issue to open on 03 Dec 2012

REC Ltd. is coming with Public Issue of Tax Free Secured Redeemable Non-Convertible Bonds of face
value of Rs. 1,000 each in the nature of Debentures having tax benefits. The Tranche Issue by the issuer is of Bonds
aggregating to Rs.1000 Cr with an option to retain oversubscription upto the shelf limit (of Rs.4500 crores)

Download REC Tax Free Bonds application forms

Investments upto 10 lakh in REC Tax Free Bonds are treated in retail investment category and investments above 10 lakhs in REC Tax Free bonds are treated in HNI Category

Bonds can be held either in physical form or in demat mode as per the option of the investor.  But if some one wants to trade the bonds on nse/bse then it can be done only with bonds in demat mode.

*Allotment in REC TAX FREE BONDS is on first come first serve basis and bidding of the form is mandatory.

With reference to the SEBI Circular dated 27th July 2012 – All Debt issue applications must be bidded before getting submitted with the collecting bankers. 

 

 

Issue details of REC Tax Free Bonds

Issue OpensMonday, December 03, 2012
Issue ClosesMonday, December 10, 2012*
Mimnimum Application SizeFace value of each Bond shall be Rs.1,000/- and the minimum application size shall be for 5 bonds and in multiples                                          of 1 Bond thereafter. No Upper Limits on investments
ListingBSE and NSE
Rating“CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE, “IND AAA” by IRRPL“[ICRA]AAA” by ICRA

 

 

Coupon Rates for Category-I, II, III & IV Applicants (% p.a)

7.22%

7.38%

Additional Coupon Rates for Category-IV Applicants (% p.a.)**

0.50%

0.50%

Aggregate Coupon Rates for Category-IV Applicants (% p.a.)**

7.72%

7.88%

Interest payment dateDecember 01, of every year.
Tenor

10 years

15 years

Face Value per Bond

Rs. 1,000/-

Frequency of Interest payment

Annual

Annual

RegistrarKarvy Computershare Private Limited
Tax BenefitsInterest income is tax free. Bonds listed on NSE & BSE are treated as long term capital asset if held for more than 12 months.
Mode of allotmentIn dematerialised form as well as in physical form, at the option of Applicants.

 

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