VN Research & Consulting
 Like us on facebook  Follow us on twitter  Follow us on LinkedIn  IndiaNotes on Google Plus  IndiaNotes on Pinterest  IndiaNotes on Stumbleupon  Subscribe to our feeds

Stocks  A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
You are here : IndiaNotes >> Managing Money >> Tax Centre

NHB: Tax Free Bonds Issue

HDFC Sec | 11 Mar, 2013  | Follow Author | Add to my Favourites 
  • Rate this article
    (Average Rating 0.0 Based on 0 ratings)

Summary: National Housing Bank (NHB) is coming out with the public issue of tax-free bonds to raise Rs 3,750 crore in the FY13. The issue will open for subscription on March 11, 2013 and close on March 15, 2013 (with an option for early closure or extension, as may be decided by the Board of NHB). The issue offers investors 10 year maturing bonds carrying interest @ 6.82% p.a. Retail Individuals and HUF (applying for upto Rs.10 lakhs) would get an additional 50 bps interest rate.

The CBDT has authorised NHB to raise the Bonds aggregating to Rs. 5,000 crore in Fiscal 2013. This is the first tax-free bonds issue by this NHB in FY13. Besides this public issue, NHB may also raise Bonds through private placement route in one or more tranches wherein the amount raising through public issue route and private placement route shall together not exceed Rs. 5,000 crore in the financial year 2013.

Credit Rating agencies – CRISIL and CARE have assigned “CRISIL AAA/Stable” and “CARE AAA” to this issue. Instruments with this rating are considered to have highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.

Tax-free bonds differ from tax saving bonds. The interest income from the instrument is not taxed in tax-free bonds while investible amount does not form part of the total income in tax saving bonds. In tax-free bonds there is no upper limit. This financial year, infrastructure companies such as DCI, NHAI, PFC, IRFC, REC, HUDCO, NHB, Ennore Port, JNPT and IIFCL were given permission to raise Rs 60,000 crore via tax-free bonds.

Investors may also consider the tax free bonds which are currently trading in the secondary markets.

  Read full report Click here to read the full report

About HDFC Sec

HDFC Securities a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates, is a leading stock broking company in the country, serving a diverse customer base of institutional and retail investors. provides investors a robust platform to trade in Equities in NSE and BSE , and derivatives in NSE. Our website will support you with the highest standards of service, convenience and hassle-free trading tools.

For more information please write in to [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

Technical Calls

What are technical calls?

Other Articles

Have a question?