Hi Friends,
There is an 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. 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.
There is an 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. 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.
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 favour 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
authorised dealer or a RBI authorised 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
OPTIONAL
APPLICATION IN ORIGINALDULY 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 commited
KEY POINTS TOFILL APPLICATION FORM
DISCLAMIER
NRE
DOCUMENTS REQUIRED
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.
