Several Tax Free Bond Issue launched this year. Everyone know all about issue when they are invested. After some time everybody forgot when interest credit in bank account. Can I sell this bond. Any lock-in period for my particular Bonds. Script code for particular bonds. Current Market traded price. And many more question.

So I decided to make one post for it. I am collecting all data from 1 Apr 2013 to 31 Mar 2014 Tax Free Bond Issue open in this period.

All data collected for my personal use. I am not responsible for any mistake in this post. If any correction & addition in this post. Comment your suggestion..

Basic

Central Board of Direct Taxes (CBDT) vide Notification dated 8th August 2013 authorises the entiites mentioned in table below, to issue, during financial year 2013-14, Tax Free, secured, redeemable, non-convertible bonds, aggregating to Rs. 48,000 crore.

Eligibility: The following shall be eligible to subscribe to the bonds:-

(a) Retail Individual Investors (RIIs); (Limit upto 10 lakhs)

(b) Qualified Institutional Buyers (QIBs);

(c) Corporates : including statutory corporations, trusts, partnership firms, limited liability partnerships, cooperative banks, regional rural banks and other legal entities, subject to compliance with their respective applicable legislations; and

(d) High Net worth Individuals (HNIs). (Above 10 lakhs)

Rate of interest:

1. There shall be a ceiling on the coupon rates based on the reference Government security (G-sec) rate.

2. The reference G-sec rate shall be the average of the base yield of G-sec for equivalent maturity reported by Fixed Income Money Market and Derivative Association of India (FIMMDA) on a daily basis (working day) prevailing for two weeks ending on Friday immediately preceding the filing of the final prospectus with the Exchange or Registrar of Companies (ROC) in case of public issue and the issue opening date in case of private placement.

3. The ceiling coupon rate for AAA rated issuers shall be the reference G-sec rate less 55 basis points in case of RIIs and reference G-sec rate less 80 basis points in case of other investor segments referred to at (b),(c) and (d) of paragraph 1 above.

 

4. In case the rating of the issuer entity is AA+, the ceiling rate shall be 10 basis points above the ceiling rate for AAA rated entities as given in clause(3) .

 

5.       In case  the  rating of the  issuer entity  is AA or AA-, the  ceiling  rate  shall  be 20  basis points above  the  ceiling  rate  for AAA rated  entities as  given in clause(3).

 

6. These ceiling rates shall apply for annual payment of interest and in case the schedule of interest payment is altered to semi-annual, the interest rates shall be reduced by 15 basis points.

7. The higher rate of interest, applicable to RIIs, shall not be available in case the bonds are transferred by RIIs to non retail investors.

 Public issue:

1. At least 70 per cent of the aggregate amount of bonds issued by each entity shall be raised through public issue and the same shall not be applicable in case of entities where the aggregate amount of bonds as per column (3) of the table is less than rupees five hundred crore.

2. 40 per cent of such public issue shall be earmarked for RIIs.

Total Issue

Following entities have received approval with the below stated limits for raising out funds through tax free bonds for the financial Year 13-14:
CodeIssuerAllocated AmtSubscribeBalance Issue
1AAIAirport authority of India Ltd. 500NIL250
2CSLCochin Shipyard Ltd. 250NIL250
3EPLEnnore Port Ltd. 500NIL500
4HUDCOHousing and Urban Development Corporation Ltd.10,00047205280
5IREDAIndian Renewable Energy Development Agency Ltd. 1,000NIL1,000
6IRFCIndian Railway Finance Corporation Ltd. 10,00010000nil
7IIFCLIndian Infrastructure Finance Co. Ltd. 10,0007,176.212823.79
8NHBNational Housing Bank 3,000 3000Nil
9NHAINational Highways Authority of India 5,0005000NIL
10NHPCNHPC Ltd.1,0001,000 NIL
11NTPCNTPC Ltd.1,7501,750NIL
12PFCPower Finance Corporation Ltd. 5,0005,000 NIL
13RECRural Electrification Corporation Ltd5,0005,000 NIL
Total (Figure in Cr.) 48,000 3075022250

Allotment Link

IssuerOpen Date Close DateRegistrar Link
IRFC -II28 Feb 2014KarvyAllotment
REC - II28 Feb14 MarKarvyAllotment
Ennore18 Mar14 MarKarvyAllotment
IIFCL III17 Feb14 MarKarvyAllotment
HUDCO III28 Feb 201413 Mar 2014KarvyAllotment
IREDA17 Feb 20144 Mar 2014Link IntimeAllotment
NHAI15 Jan 201427 Jan 2014KarvyAllotment
IRFC6 Jan 20147 Feb 2014KarvyAllotment
IIFCL -Tranche II9 Dec 201310 Jan 14KarvyAllotment
Hudco -Tranche II2 Dec 20131 Jan 14KarvyAllotment
NHB30 Dec 132 Jan 14KarvyAllotment
NTPC Tax Free Bond3 Dec 20135 Dec 2013KarvyAllotment
NHPC Tax Free Bond18 Oct 201323 Oct 2013KarvyAllotment
PFC Tax Free Bond14 Oct 20135 Nov 2013KarvyAllotment
IIFCL Tax Free Bond03 Oct 201331 Oct 2013KarvyAllotment
HUDCO Tax Free Bond - Tranche I17 Sep 201314 Oct 2013KarvyAllotment
REC Tax Free Bond- Tranche I30 Aug 201317 Sep 2013KarvyAllotment

Market Price

Shortly Update current tradable price table

Listing

Allotment & Listing Details : ISIN No Script Code, Maturity Date, Maturity Amt, Interest Payment Date

Tax Free BondREC Tax Free Bond
Issue Open30 Aug 2013
Issue Close 17 Sep 2013
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
Allotment Date26 Sep 2013
Listing Date30 Sep 2013
Interest Payment Date1 Dec Every Year
Face Value1000
Circular Ref. NoBSE -20130927 -2
Series1 A2 A3 A1 B2 B3 B
Coupon8.01%8.46%8.37%8.26%8.71%8.62%
Period10 yr15 yr20 yr10 yr15 yr20 yr
ISIN NoINE 020B07HO1INE 020B07HP8INE 020B07HQ6INE 020B07HR4INE 020B07HS2INE 020B07HT0
BSE Script 961775961776961777961778961779961780
NSE Script
Maturity24 SEP 202324 SEP 202824 SEP 203324 SEP 202324 SEP 202824 SEP 2033
Maturity Amt100010001000100010001000

Tax Free BondHUDCO Tax Free Bond Tranche I
Issue Open17 SEP 2013
Issue Close 14 OCT 2013
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
Allotment Date25 OCT 2013
Listing Date29 OCT 2013
Interest Payment Date25 Oct Every Year
Face Value1000
Circular Ref. NoBSE-20140123-12
Series1 A2 A3 A1 B2 B3 B
Coupon8.14%8.51%8.49%8.39%8.76%8.74%
Period10 yr15 yr20 yr10 yr15 yr20 yr
ISIN NoINE 031A07907INE 031A07915INE 031A07923INE 031A07931INE 031A07949INE 031A07956
BSE Script 961781961782961783961784961785961786
NSE Script
Maturity25 OCT 202325 OCT 202825 OCT 203325 OCT 202325 OCT 202825 OCT 2033
Maturity Amt100010001000100010001000

Tax Free Bond 2013-14India Infrastructure Finance Co Ltd
Issue Open3 Oct 2013
Issue Close 31 Oct 2013
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
Allotment Date12 Nov 2013
Listing Date14 Nov, 2013
Interest Payment Date12 Nov - Every Year
Face Value1000
Circular Ref. No BSE - 20131113-12
Series 1ASeries 1BSeries 2ASeries 2BSeries 3ASeries 3B
Coupon8.01%8.26%8.38%8.63%8.50%8.75%
Period10 Years10 Years15 Years15 Years20 Years20 Years
ISIN NoINE 787H07263 INE 787H07271 INE 787H07289 INE 787H07297 INE 787H07305 INE 787H07313
BSE Script 961793961794961795961796961797961798
NSE Script
Maturity12 Nov 202312 Nov 202312 Nov 202812 Nov 202812 Nov 203312 Nov 2033

Tax Free Bond 2013-14PFC Ltd
Issue Open
Issue Close
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
Allotment Date16 Nov 2013
Listing Date20 Nov, 2013
Interest Payment Date16 Nov Every Year
Face Value1000
Circular Ref. No BSE - 20131119-17
Series 1ASeries 2ASeries 3ASeries 1BSeries 2BSeries 3B
Coupon8.18%8.54%8.67%8.43%8.79%8.92%
Period10 Years15 Years20 Years10 Years15 Years20 Years
ISIN NoINE 134E07414 INE 134E07430INE 134E07455INE 134E07422INE 134E07448INE 134E07463
BSE Script 961799961800961801961802961803961804
Maturity16 Nov 202316 Nov 202816 Nov 203316 Nov 202316 Nov 202816 Nov 2033

Tax Free Bond 2013-14NHPC Ltd
Issue Open18 Oct 2013
Issue Close 23 Oct 2013
Issue RegistrarKarvy Computershare
Listing ExchangeBSE / NSE
Allotment Date2 Nov 2013
Listing Date7 Nov, 2013
Interest Payment Date1 April - Every Year
Face Value1000
Circular Ref. NoNSE : 917/2013 BSE - 20131106-6
Series 1ASeries 2ASeries 3ASeries 1BSeries 2BSeries 3B
Coupon8.18%8.54%8.67%8.43%8.79%8.92%
Period10 Years15 Years20 Years10 Years15 Years20 Years
ISIN NoINE 848E07518 INE 848E07526INE 848E07534INE 848E07542INE 848E07559INE 848E07567
BSE Script 961787961788961789961790961791961792
NSE Script NHPC.N1NHPC.N2NHPC.N3NHPC.N4NHPC.N5NHPC.N6
Maturity2 Nov 20232 Nov 20282 Nov 20332 Nov 20232 Nov 20282 Nov 2033

Tax Free Bond 2013-14HUDCO
Issue Open2 Dec 2013
Issue Close 10 Jan 2014
Issue RegistrarKarvy Computershare
Listing ExchangeProposed BSE / NSE
Allotment Date13 JAN 2014
Listing Date17 JAN 2014
Interest Payment Date13 JANUARY EVERY YEAR
Face Value1000
Circular Ref. NoBSE-20140116-7
Series 1ASeries 2ASeries 3ASeries 1BSeries 2BSeries 3B
Coupon8.51%8.58%8.76%8.76%8.83%9.01%
Period10 Years15 Years20 Years10 Years15 Years20 Years
ISIN NoINE 031A07964 INE 031A07972 INE 031A07980 INE 031A07998 INE 031A07AA4INE 031A07AB2
BSE Script 961811961812961813961814961815961816
Maturity Date13 Jan 202413 Jan 202913 Jan 203413 Jan 202413 Jan 202913 Jan 2034
Maturity100010001000100010001000

Tax Free Bond 2013-14NTPC Ltd
Issue Open3 Dec 2013
Issue Close 16 Dec 2013 (early close 6 dec)
Issue RegistrarKarvy Computershare
Listing ExchangeProposed BSE / NSE
Allotment Date16 Dec 2013
Listing Date19 Dec 2013
Interest Payment Date16 Dec each year till the date of maturity
Face Value1000
Circular Ref. NoBSE- 20131217-11
Series 1ASeries 2ASeries 3ASeries 1BSeries 2BSeries 3B
Coupon8.41%8.48%8.66%8.66%8.73%8.91%
Period10 Years15 Years20 Years10 Years15 Years20 Years
ISIN NoINE 733E07JE0 INE 733E07JF7INE 733E07JG5INE 733E07JH3INE 733E07JE0I1INE 733E07JJ9
BSE Script 961805961806961807961808961809961810
NSE Script
Maturity16.12.202316.12.202816.12.203316.12.202316.12.202816.12.2033

Tax Free BondIIFCL Tax Free Bond - Tranche II
Issue Open09 Dec 2013
Issue Close 10 Jan 2014
Issue RegistrarKarvy Computershare
Listing ExchangeBSE
Allotment Date22 Jan 14
Listing Date24 Jan 14
Interest Payment Date22 Jan Every Year
Face Value1000
Circular Ref. NoBSE-20140123-12
Series1 A2 A3 A1 B2 B3 B
Coupon8.41%8.48%8.66%8.66%8.73%8.91%
Period10 yr15 yr20 yr10 yr15 yr20 yr
ISIN NoINE 787H07321INE 787H07339INE 787H07347INE 787H07354INE 787H07362INE 787H07370
BSE Script 961817961818961819961820961821961822
NSE Script
Maturity22 JAN 202422 JAN 202922 JAN 203422 JAN 202422 JAN 202922 JAN 2034
Maturity Amt100010001000100010001000

SeriesN1N2N3N4N5N6
Coupon8.26%8.63%8.76%8.51%8.88%9.01%
Period10 yr15 yr20 yr10 yr15 yr20 yr
ISIN NoINE 557F07082INE 557F07090INE 557F07108INE 557F07116INE 557F07124INE 557F07132
BSE Script ------
NSE Script NHBTF2014.N1NHBTF2014.N2NHBTF2014.N3NHBTF2014.N4NHBTF2014.N5NHBTF2014.N6
Maturity13 JAN 202413 JAN 202913 JAN 203413 JAN 202413 JAN 202913 JAN 2034
Maturity Amt500050005000500050005000
SeriesN1N2N3N4N5N6
Coupon8.26%8.63%8.76%8.51%8.88%9.01%
Period10 yr15 yr20 yr10 yr15 yr20 yr
ISIN NoINE 557F07082INE 557F07090INE 557F07108INE 557F07116INE 557F07124INE 557F07132
BSE Script ------
NSE Script NHBTF2014.N1NHBTF2014.N2NHBTF2014.N3NHBTF2014.N4NHBTF2014.N5NHBTF2014.N6
Maturity13 JAN 202413 JAN 202913 JAN 203413 JAN 202413 JAN 202913 JAN 2034
Maturity Amt500050005000500050005000

IRFC ISSUE RUNNING

NHAI ISSUE RUNNING

Tax Free Bonds Interest Payment Table

Sr. NoIssuerIP Date *Deemed DateListing Date
1RECDec 1, Every Year24 Sep 201330 Sep 13
2HUDCO Tranche IOct 25, Every Year25 Oct 201329 Oct 13
3IIFCL Tranche I12 Nov, Every Year12 Nov 201314 Nov 13
4PFC 16 Nov , Every Year16 Nov 201320 Nov 13
5NHPC1 April Every Year2 Nov 20137 Nov 13
6HUDCO Tranche II13 Jan , Every Year13 Jan 201417 Jan 14
7NTPC16 Dec, Every Year16 Dec 201319 Dec 13
8IIFCL Tranche II22 Jan,22 Jan 201424 Jan 14
9NHB13 Jan 13 Jan 201416 Jan 14
10IRFC
11NHAI
* IP Date – Interest Payment Date Deemed Date – Allotment Date

Benefit

Tax Free Bond appeal to investor who are looking for fixed and safe returns keeping the risk level as the same as that of a Bank FD. Tax Free Interest TFB scores over a Bank FD since the interest is Tax Free in the hand of investor (TDS not deducted on interest). It is not included in the your total income while filling income tax returns.

Pre Tax Returns are Very Attractive

OptionsTax Free Bond CouponTax Bracket 10.30 % Tax Bracket 20.60% Tax Bracket 30.90%
10 Years8.43 %9.40 %10.62 %12.20 %
15 Years8.79 %9.80 %11.07 %12.72 %
20 Years 8.92 %9.94 %11.23 %12.91 %

Safety :TFB are issued by PSUs and come with the high credit rating.

Tradable Listing on stock exchanges, freely tradable on stock exchange.
Retail Preference TFB given higher coupon to retail investor.
Format : Option of holding bonds in ” Demat Form ” as well as ” Physical Form” – easy to handle and monitor.