What are Infra bonds? | IFCI bonds last date

August 30th, 2010| Uncategorized.

What are Infra bonds? | IFCI bonds last date

The companies are getting ready to release the new infra bonds as the RBI had released the rules and regulations for the infra binds in the last month. The response was good from the investors for the IFCI infra bonds. The LICs and IDFCs had got the permission and few non banking companies had also got the permission from the RBI to release the bonds. These bonds are going to be released soon.

Infra bonds:

The infra bonds are the one which collect the money required for the basic facilities in India through long term bonds. The companies should release these bonds with the permission of the RBI. Generally the duration of these bonds are ten years and the five year period is lock in period. That means the bonds should be taken back in five years. The interest from the infra bonds is more compared to other government investment options. The IFCI infra bonds are giving the interest rates from 7.85% to 7.95%. They calculate the interest once in a year. The minimum investment is based on the companies and they can invest maximum of any amount. They have only Rs.20, 000 concessions under the 80CCF.

Can we stop in the middle?

Even though the duration of the bond is ten years, we can’t stop this in the first five years as this is the lock in period. We can change them into money in the secondary market or buy back. The infra bonds are stored in the stock exchanges and so we can stop the bond in the secondary market after the lock in period. There are two options in the infra bonds which are buy back and non buy back. By selecting the buyback option, we can stop the bond after five years and the interest rates are less.

 

IFCI bonds last date:

The companies which have the RBI permission will issue these bonds and the IFCIs, IDFIs and LICs got the permission along with few non financing companies. The last date the IFCI infra bonds is august 31st and the minimum amount is Rs.5000. the duration of the bond is ten years and the interest rates are 7.85% to 7.95%. We get the interest rate as 7.85% if we drop after five years and the interest rate is 7.95% if we complete the bond in ten years. Those who have selected the buyback option can use the offer from 2014 to 2019. They save the bonds in BSE and so we can drop them in the secondary market.

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