REC Tax Free Bond Feb 2014

Rural electrification corporation limited(REC)Tax Free Bond Feb 2014 Interest rate up to 8.88% pre tax rate up to 13.43%

 REC Tax Free Bond Feb 2014

Company Profile

* Notified as a Public Financial Institution under Section 4A of the Companies Act, 1956

* Engaged in the financing and promotion of transmission, distribution and generation including renewable energy projects throughout India

* REC is one of only 16 Indian public sector undertakings to be granted “Navratna” status by the Department of Public Enterprise by virtue of its operational efficiency and financial strength

* 66.80% shareholding in REC is held by Government of India acting through Ministry of Power
GoI has rated RECs performance as “Excellent” continuously since Fiscal 1994

* Registered as a Non Deposit taking NBFC with Reserve Bank of India. RBI has further categorized REC as an IFC (Infrastructure Finance Company)

REC Tax Free Bond Feb 2014 Details

Particulars
Rural Electrification Corporation LimitedTAX FREE BONDS Tranche II
Issue SizeRs. 250 Cr (Base Issue Size) with option to retain oversubscription upto the shelf
limit (being Rs. 1059.39 Cr)
Issue Opening Date28th February 2014
Issue Closing Date14th March 2014
Rating“CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE, “IND AAA” by IRRPL &
“[ICRA] AAA” by ICRA.
Minimum ApplicationRs.5000 & in multiples of 1 bond thereafter
Face Value of BondRs.1000
ListingBSE
Mode of AllotmentDematerialised and Physical form

REC Tax Free Bond Feb 2014 Series Details

Options
Tranche – II Series 1A
Tranche – II Series 2A
Tranche – II Series 3A
Tenor10 Years15Years20 Years
Interest rate (%) p.a.8.19%8.63%8.61%
OptionsTranche – II Series 1BTranche – II Series 2BTranche – II Series 3B
Interest rate (%) p.a.(Category IV only)8.44%8.88%8.86%

Who can apply / invest ?

1] Individual, 2] HUF, 3] Charitable Institute, 4] Company, 5] Firms, 6] Co-operative, 7] NRI, 8] Financial Institute

Benefits to the Investor

• In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of Section 10 of the Income Tax Act, 1961 (43
of 1961) the Central Government authorizes REC to issue during the FY 2013-14, Tax Free, Secured, Redeemable, Nonconvertible
Bonds.
• The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per
provisions under section 10 (15) (iv) (h) of I.T. Act, 1961.
• There will 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.
• Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

Application Process and Form Submission/Collection Centers

Please take print of the Application Form A4 paper size. Click here to download Application form of REC Tax free Bond 2014
Attach following document along with the application form : –
1] PAN Card and Address Proof Photo Copy attested by applicant.
2] One Cancelled Cheque copy.
3] Bidding is mandatory.
4] Cheque / DD should be drawn in favour of “REC Tax Free Bonds 2013 – Escrow Account – R”.
5] On First come First Serve Basis
6] Keep photocopy of application form for your record.
7] Submit / deposit your NCD application form in Listed/ Design Bank Branches. (search below for your city)
8] To record and track the status/allotment of your application form, send us the soft copy Application Form/ Acknowledgement Slip.
9] The actual bond will reflect in your demat account within 8-12 weeks time form date of allotment.
10] Free Home Service available *

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