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Power Finance Ltd Tax Free Bond

Hi  All,

Yet another issue of Tax Free Bond. The terms are more or less similar to NHAI - National Highway Bonds.

Main difference is minimum application amount is Rs.10000/- & multiple of Rs.5000/- & Annual interest is payable on October 15 each year and will be listed at BSE only and issue is opening on 30th Dec. 2011. 

Needless to say allotment is on 1st come 1st serve Basis. Interest Rate is same as NHAI.

You can download application eforms through the following link and deposit with the bankers to the issue directly as given in the form. Just scroll down select issue TAB and select PFC. Please ensure you download form by clicking on Radio Button with code option to get our code 991044 printed on the form. So that we can earn something on same, otherwise only our main broker will be benefitted.

http://www.akstockmart.com/akintra/BA/DNLDFORM.aspx?refno=z3uTx/qwqEs= 

Details of  Power Finance Ltd Tax Free Bond.

Issue Structure

Issue Opening Date	Friday, December 30, 2011
Issue Closing Date	Monday, January 16, 2012 The subscription list for the Issue shall remain open for subscription at the commencement of banking hours and close at the close of banking hours, with an option for early closure (subject to the Issue being open for a minimum of 3 days) or extension by such period, upto a period of 30 days from the date of opening of the Issue, as may be decided by the Board of Directors/ Committee of the Company. In the event of such early closure of the subscription list of the Issue, our company shall ensure that public notice of such early closure is published on or before the day of such early date of closure through advertisement/s in a leading national daily newspaper. Further, Allotment shall be on first come first serve basis, with Issuer Company having the discretion to close the Issue early irrespective of whether any of the Portion(s) are fully subscribed.
Issue of Bonds	Public Issue by Power Finance Corporation Limited (“Company” or “Issuer”) of tax free bonds of face value of Rs 1,000 each, in the nature of secured, redeemable, non-convertible debentures, having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended aggregating Rs 1,000 Crores with an option to retain an oversubscription upto the Shelf Limit (i.e. Rs 4033.13 Crores) (“Issue”).
Instrument	Tax Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
Instrument Form	In physical or in dematerialized form, at the option of the investors
Trading	Compulsorily in dematerialized form
Credit Rating	“CRISIL AAA/Stable” by CRISIL, “ICRA AAA” by ICRA
Tenor/Redemption Date	10 Years and 15 Years
Lead Managers to the Issue	A. K. Capital Services Ltd, SBI Capital Markets Ltd. & RR Investors Capital Services Pvt. Ltd.
Trustee for the Bondholders	GDA Trustee & Consultancy Ltd.
Depositories	NSDL and CDSL
Proposed to be listed on	BSE
Mode of Payments	1. At par cheques 2. Demand Drafts
Issuances	In dematerialized form and physical form*
Trading	In dematerialized form only
Interest on Application Money	Interest on application money on the amount allotted, subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, as applicable, to any applicants to whom Bonds are allotted pursuant to the Issue from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of banking of the application (being the date of submission of each application as duly acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment, at the rate of coupon rate of 8.20% per annum and 8.30% per annum for Tranche 1 Series 1 and Tranche 1 Series 2 Bonds respectively
Interest on Application Money which is liable to be refunded	Interest on application money which is liable to be refunded to the applicants in accordance with the provisions of the SEBI Debt Regulations, or other applicable statutory and/or regulatory requirements, subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, as applicable, from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment, at the rate of 5% per annum

Bond Particulars

Bond Particulars Options / Series	Tranche-1 Series I	Tranche-1 Series II
Face Value per Bond	Rs. 1,000	Rs. 1,000
Minimum Application Size	Rs. 10,000 (10 Bonds)	Rs. 10,000 (10 Bonds)
In Multiples of	Rs. 5,000 (5 Bonds)	Rs. 5,000 (5 Bonds)
Frequency of Interest payment	Payable Annually	Payable Annually
Interest Rate p.a. (%)	8.20%	8.30%
Interest Payment Date	Every year on October 15, and on respective maturity
Redemption /Maturity Date	10 Years	15 Years
Redemption Amount	Repayment of the Face Value plus any interest that may have accrued at the Redemption Date	Repayment of the Face Value plus any interest that may have accrued at the Redemption Date

Who can Apply?

Category I	Category II (Above Rs. 5 Lakh)	Category III (Below & including Rs. 5 Lakh)
Public Financial Institutions, Statutory Corporations, Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorised to invest in the Bonds	Resident Indian individuals	Resident Indian individuals
Provident Funds, Pension Funds, Superannuation Funds and Gratuity Funds, which are authorised to invest in the Bonds	Hindu Undivided Families through the Karta	Hindu Undivided Families through the Karta
Foreign Institutional Investors (including sub-accounts)	Non Resident Indians on repatriation as well as non-repatriation basis	Non Resident Indians on repatriation as well as non-repatriation basis
Insurance Companies registered with the IRDA
National Investment Fund
Mutual Funds
Companies; bodies corporate and societies registered under the applicable laws in India and authorised to invest in the Bonds
Public/private charitable/religious trusts which are authorised to invest in the Bonds
Scientific and/or industrial research organisations, which are authorised to invest in the Bonds
Partnership firms in the name of the partners
Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009)

Applications cannot be made by:

Minors without a guardian name;

Foreign nationals;

Persons resident outside India other than NRIs ;

Overseas Corporate Bodies

Basis of Allotment

Category	I	II (Above Rs. 5 Lakh)	III (Below & including Rs. 5 Lakh)
Portion	Institutional Portion	HNI Portion	Retail Portion
Size in %	50% of Overall Issue Size on first come first serve basis	25% of Overall Issue Size on first come first serve basis	25% of Overall Issue Size on first come first serve basis

NHAI Tax Free Bonds

Hi Friends,


There is a public issue of NHAI Tax Free Bonds starting on 28th December 2011, will be closing in 3 days having allotment on First Come First Serve Basis. The Interest rate is very attractive 8.20 & 8.30 for 10 years & 15 years respectively which approximately works out to upto 11.70 & 11.85 pre Tax according to the Tax slab you fall. I think this is one of the best offer of the decade as it is issued by Govt. of India having 'AAA' Rating and the Interest in your hand is totally Tax Free & liquidity is possible due to Listing on Stock Exchanges. Even Current RBI Bonds give 8%Taxable Income having 6 years of holding period & no liquidity possible in between. The other feature is NRI, H.U.F. & Minor can also invest.

You can download eform for NHAI Taxfree Bonds and deposit with the bankers to the issue directly. Please ensure you download form with code option to get our code 991044 printed on the form. So that we can earn something on same, otherwise only our main broker will be benefitted.

http://www.akstockmart.com/akintra/BA/DNLDFORM.aspx?refno=z3uTx/qwqEs= 

More details to the issue is as Follows. Any further query you can write at pinals6@yahoo.co.in

Please find attached Documents required along with FAQs and NRI Process for NHAI Tax Free Bonds.

1. What is the face value of each bond? Minimum Investment Size?

Rs. 1,000/- per Bond. Minimum 50 Bonds,

Minimum Investment Size-Rs. 50000 (in multiples of 1 bond)

2. If I’m an NRI can I invest in these bonds?

Yes. NRI’s can invest in bonds through- Repatriable as well as Non-Repatriable basis.

3. Can person who has foreign citizenship and having PIO card apply in NHAI Issue? No.

4. Can a NRI apply for bonds in Physical mode?

No. NRI can not apply for physical mode.

5. There is a separate form for NRI?

There is no separate form for NRIs, the form for residents and NRIs are same.

6. Documents required along with NRI application?

Application form in original cheque from respective bank account-NRE/NRO Notarized copy of POA if Application under POA.

7. Can one apply in joint names?

Yes, Applications may be made in single or joint names (not exceeding three). In the case of joint Applications, all refunds/ interests/ redemption amounts will be made out in favor of the first Applicant. All communications will be addressed to the first

named Applicant whose name appears in the Application Form at the address mentioned therein.

Names in the Application Form should be identical to those appearing in the account details in the Depositories. In case of joint holders, the names should necessarily be in the same sequence as they appear in the account details in the Depositories.

8. Can NRI apply by doing the direct transfer of funds to escrow account?

No, not allowed NOTE: Only cheque from respective NRE/NRO account maintained with an RBI authorized dealer or a RBI authorized bank in India will be acceptable.

9. Can cheque be signed by a person holding POA?

Cheque may be signed by the POA holder as long as the applicant`s bank clears the Cheque

10. Documentary requirement in case of application made under power of attorney

Notarized copy of POA must be attached with the original application and cheque.

11. Who will get the interest in case of joint application?

In case of joint application, interest will be accounted to the first holder only, and will be credited to the bank account which is linked to demat account.

12. Is there TDS on the interest on allotment of bonds?

There will be no deduction of tax at source from the interest on allotment of bonds

13. Are these bonds listed any where?

Yes. These bonds are listed on the F Group and Capital Market Segment at BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) respectively.BSE shall be the designated Stock Exchange.

14. Will the scanned copy of form be acceptable?

NO. Scanned copy of form will not be acceptable.

15. Does this bond carry buyback options?

No. Neither “Put Option” shall be available to the Bondholder(s), nor would “Call Option” be available to the Company to redeem the Bonds prior to maturity

16. What is the interest on application money on such bonds prior to the date on allotment?

In case of allotment, The interest on application money is the respective coupon rate (subject to deduction of tax at source, as applicable), will be paid to the eligible investors from the date of realization of subscription or 3 days from the date of banking

application money (duly acknowledge by banker to the issue) whichever is later, money up to one date prior to the Deemed Date of Allotment.

In case of refund of application Money. Interest on refund amount on application money will be 4% p.a. date of realization

of subscription money up to one date prior to the rejection

NATIONAL HIGHWAYS AUTHORITY OF INDIA

ISSUE TIME SCHEDULE

Issue Opening Date December 28, 2011

Issue Closing Date January 11, 2012

Issue shall remain open for subscription for a minimum of 3 days or such extended period upto a maximum period of 30 days from the date of opening of the Issue. In case of early closure, NHAI shall ensure that public notice of such early closure is published on or before the day of such early date of closure through advertisement/s in a leading national daily newspaper

HIGHLIGHTS OF THE BOND ISSUE

Issuer National Highways Authority of India

Nature of Instrument

Tax-Free Secured Redeemable Non-Convertible Bonds in the  nature of Debentures

Issue Size Rs. 5,000 crore with an option to retain oversubscription of upto Rs. 5,000 crore

Tax Benefits 

1. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;

2. There shall be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors;

3. As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer. Under section 112 of the I.T. Act, capital gains arising on the transfer of listed Bonds shall be taxed @ 10% without indexation;

4. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.

Instrument Form At the option of investors, in dematerialized as well as in physical form Security Pari passu charge on the immovable property situated at Ahmadabad and exclusive first charge on fixed assets of NHAI, being highway project comprising of all superstructure including highway lightings, road barriers and dividers, bridges, culverts and all other super structures constructed on national highways entrusted to NHAI 

Credit Rating “CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE and “Fitch AAA(ind)” by FITCH

Face Value Rs. 1,000/- per Bond

Issue Price At par i.e. Rs. 1,000/- per Bond

Minimum Application 50 Bonds (Rs. 50,000/-) and in multiples of 1 Bonds (Rs. 1,000/-) thereafter

Tranche Series-I Series-II

Tenor 10 Years 15 Years

Put & Call Option None None

Maturity/ Redemption At par on the expiry of 10th Year from the

Deemed Date of Allotment

At par on the expiry of 15th Year from the

Deemed Date of Allotment

Coupon Rate 8.20% p.a. 8.30% p.a.

Interest Payment Annual Annual

Interest Payment Dates

Every year on October 01, and on respective maturity

Listing Proposed on BSE Ltd. (“BSE”) and National Stock Exchange of India Ltd. (“NSE”). The

Designated Stock Exchange for the Issue is BSE

Trustee SBICAP Trustee Company Ltd.

Interest on Application Money

At the respective coupon rate on Bonds (subject to deduction of tax at source, as applicable) will be paid to the eligible applicants to whom the Bonds are allotted pursuant to the Issue on the amount allotted from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of submission of each application as duly acknowledged by the Bankers to the Issue) whichever is later upto one date prior to the Deemed Date of Allotment.

@ 4.00% p.a. (subject to deduction of tax at source, as applicable) on application money which is liable to be refunded to the applicants from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the

application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment. Such interest shall be paid along with the monies liable to be refunded.

Who can apply Category-I Category-II Category-III

• Public Financial Institutions,

• Statutory Corporations,

• Commercial Banks,

• Co-operative Banks,

• Regional Rural Banks,

• Provident Funds,

• Pension Funds,

• Superannuation Funds,

• Gratuity Funds,

• Insurance Companies registered with the IRDA,

• National Investment Fund,

• Mutual Funds,

• Foreign Institutional Investors (including sub-accounts),

• Companies; Bodies Corporate and Societies registered under the applicable laws in India and authorised to invest in the Bonds,

• Public/ Private Charitable/ Religious Trusts which are authorised to invest in the Bonds, • Scientific and/or industrial research organisations, which are authorised to invest in the Bonds; 

• Partnership firms in the name of the partners, 

• Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009) 

The following investors applying for an amount aggregating to above Rs. 5 lakhs in both the bond series taken together:

• Resident Indian individuals;

• Hindu Undivided Families through the Karta and

• Non Resident Indians on repatriation as well as non-repatriation basis 

The following investors applying for an amount aggregating to upto and including Rs. 5 lakhs in both the bond series taken together: 

• Resident Indian individuals;

• Hindu Undivided Families through the Karta and

• Non Resident Indians on repatriation as well as non-repatriation basis.

Reservation for Categories 40% of overall issue size 30% of overall issue size 30% of overall issue size Basis of allocation in case of over subscription On first-come-first-serve basis On first-come-first-serve basis On prorata/ proportionate basis

Documents required :

Application by Individual in Physical form.

Self attested copy of the Pan card Self attested copy of the proof of residence.

Any of the following documents shall be considered as a verifiable proof of residence:

Ration card issued by the GoI; valid driving license issued by any transport authority of the Republic of India; or electricity bill (not older than three months); or landline telephone bill (not older than three months); or valid passport issued by the GoI; or

Voter’s Identity Card issued by the GoI; or passbook or latest bank statement issued by a bank operating in India; or leave and license agreement or agreement for sale or rent agreement or flat maintenance bill; 
Self-attested copy of a cancelled cheque of the bank account to which the amounts pertaining to payment of refunds, interest and redemption, as applicable, should be credited.

Application by Corporate

Pan Card copy duly stamp & signed Certified true copy Board Resolution authorizing investment and containing operating instructions Memorandum & Article of Associations duly stamp & signed. Specimen Signature of Authorized person 

Applications by Mutual Funds

SEBI Registration Certificate and trust deed Resolution authorizing investment and containing operating instructions and Specimen signatures of authorized signatories Pan Card copy duly stamp & signed 

Application by Scheduled Banks, Co-operative Banks and Regional Rural Banks

Board Resolution authorizing investments and containing operating instruction; Letter of Authorization Specimen signatures of authorized signatories Pan Card copy duly stamp & signed

Application by Insurance Companies

Memorandum and Articles of Association Pan Card copy duly stamp & signed Power of Attorney Resolution authorising investment and containing operating instructions Specimen signatures of authorized Signatories.

Applications by Trusts

certified copy of the registered instrument for creation of such trust, Power of Attorney, if any, in favor of one or more trustees thereof, such other documents evidencing registration thereof under applicable statutory/regulatory requirements. Further, any trusts applying for NCDs pursuant to the Issue must ensure that

(a) they are authorised under applicable statutory/regulatory requirements and their constitution instrument to hold and invest in debentures,

(b) they have obtained all necessary approvals, consents or other authorisations, which may be required under applicable statutory and/or regulatory requirements to invest in debentures, and

(c) applications made by them do not exceed the investment limits or maximum number of NCDs that can be held by them under applicable statutory and or regulatory provisions.

Applications under Power of Attorney

In case of Investments made pursuant to a power of attorney by Category I investors,

a certified copy of the power of attorney or the relevant resolution or authority, as the case may be, certified copy of the memorandum of association and articles of association and/or bye laws and/or charter documents, as applicable, must be lodged The Application Form.

In case of Investments made pursuant to a power of attorney by Category II and Category III investors, a Certified copy of the power of attorney the Application Form.

Minors with a Guardian

The Application form Pan card copy of Minor Pan Card copy of Guardian

CHECKLIST FOR NRI APPLICATION FOR NHAI ISSUE

CHEQUE FROM NRE BANK A/C

CHEQUE FROM NRO A/C

DEMAT SHOULD BE NRE STATUS

DEMAT SHOULD BE NRO STATUS

SR NO  POINTS  NOTE TICK

1 DATE

APPLICATION DATE REQD

2 NAME OF THE APPLICANT

APPLICANT NAME REQD AS PER THE NAME APPEARED IN DEMAT A/C

3 SECOND/THIRD APPLICANT NAME

IF APPLICABLE

4 ADDRESS

ADDRESS SHOULD BE MENTIONED AS PER THE DEMAT A/C

5 CATEGORY OF THE A/C

NRE OR NRO A/C - COMPULSORY REQD

6 DEPOSITORY PARTICIPANT DETAILS

NSDL OR CDSL

7 OPTION

8 PAYMENT DETAILS

IT SHOULD BE MENTIONED AS PER THE CHEQUE DETAILS

9 PAN NO

CORRECT PAN NO SHOULD BE FILLED

10 SIGNATURE

SIGNATURE AS PER THE DEMAT A/C

11 NO OF BONDS APPLIED

12 AMOUNT 


MANDATORY

APPLICATION IN ORIGINAL DULY SIGNED BY ALL HOLDERS

CLIENT MASTER COPY

CHEQUE FROM RESPECTIVE A/C NRE OR NRO

BANK STATEMENT SHOWING STATUS OF A/C - NRE /NRO NOTARIZED COPY OF POA - IF APPLICABLE

Applicants should refer the Tranche and the shelf prospectus before making any application.

This document should not be construed as a part of the tranche or the shelf prospectus. in filling up the form leading to rejection for any reason.

CHECKLIST FOR NRI APPLICATION FOR NHAI ISSUE CATEGORY

Please check the application form before submitting to us and the management will not be responsible for any errors or ommisions committed

KEY POINTS TO FILL APPLICATION FORM

DOCUMENTS REQUIRED

NRE/ NRO

Macro Level Process flow to be followed by NRI in NHAI Issue.

Application

Fill up the form as per the checklist enclosed.

Application form is the same for all categories of Applicants.

Condition 1-Application above 500000 Class –HNI Category Allotment - first cum first serve basis.

Condition 2-Application up to 500000 Class –Retail Category

Allotment –Pro- Rata basis. 
Submission of application

Submit original Application form to the collection centre( Branches of banks collecting the application in INDIA) Refer Banking Matrix or the collection centre nearby as mentioned on the reverse of the application form. 


Payment

Payment only by “ Cheque ”

Cheque drawn from NRE/NRO saving as per application status.

Cheque may be signed by the POA holder as long as the applicant’s bank clears the cheque.

Documents to be submitted

NRE Application:

Original Application Duly Completed as per checklist enclosed

Cheque from NRE Savings Account

Notarised copy of POA if the application is excecuted under POA

NRO Application 

Original Application Duly Completed as per checklist enclosed

Cheque from NRO Savings Account

Notarised copy of POA if the application is excecuted under POA

Client copy

Maintain Xerox copy of the application form

and cheque Obtain acknowledgement from bank with

date, stamp and signature.


For any clarification contac me. Till then bye for now.