{"id":4058,"date":"2013-03-11T14:30:15","date_gmt":"2013-03-11T09:00:15","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=4058"},"modified":"2014-06-20T19:07:28","modified_gmt":"2014-06-20T13:37:28","slug":"jnpt-tax-free-bonds-march-2013-review","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/jnpt-tax-free-bonds-march-2013-review\/","title":{"rendered":"JNPT Tax Free Bonds – March 2013 – Review"},"content":{"rendered":"
The bonds market is already abuzz with Tax free bonds and now\u00a0The Jawaharlal Nehru Port Trust (JNPT) is coming out with its tax free bonds for Rs 500 crores.\u00a0Here are the details<\/p>\n
JNPT Tax Free Bonds – Significant Points:<\/h3>\n
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Offer Period:<\/strong>\u00a0March 11 \u2013 March 15, 2013 (the offer can be pre-closed on full subscription)<\/li>\n
Annual Interest Rates for Retail Investors:<\/strong>\n
\n
7.32% for 10 Years<\/li>\n
The interest rates are 6.82% for HNIs, QIBs and corporate subscribers.<\/em><\/li>\n<\/ul>\n<\/li>\n
Price of each bond:<\/strong>\u00a0Rs 1,000<\/li>\n
Max Investment Limit for Retail Investor:<\/strong>\u00a0Rs 10 Lakhs<\/li>\n
Reservation:<\/strong>\u00a040% reserved for retail investors<\/li>\n
Rating:<\/strong>\u00a0BWR AAA<\/li>\n
Allotment:<\/strong>\u00a0First Come First Serve<\/li>\n
Listing:<\/strong>\u00a0Bonds would be listed on both NSE and BSE and will entail capital gains tax on exit through secondary market<\/li>\n
You can apply for these bonds in the\u00a0Demat or the physical format<\/strong>, but for trading\u00a0you need to have them in the Dematerialized format.<\/li>\n
Step Down Clause:<\/strong>\u00a0The bonds will come with a step-down clause, according to which only the original allottee, who has subscribed under the retail category will receive the coupon of 7.32% depending on tenure. On sale or transfer, the benefit is lost and rates reduce to that applicable for other investors (6.82%).<\/li>\n<\/ul>\n
Why you should invest?<\/h3>\n\n
The bonds are secured to the full extent and JNPT\u00a0is a Government of India undertaking<\/li>\n
The interest rates on future tax free bonds might be lower as RBI might moderate its policy rates further<\/li>\n
Reduction in interest rates would means an increase in the price of bonds thus giving capital gains<\/li>\n<\/ol>\n
Why you should not invest?<\/h3>\n\n
The interest rate offered by PPF is 8.8% tax free. You should exhaust your maximum PPF limit of Rs. 1 Lakh before you look for tax free bonds<\/li>\n
![\"JNPT](\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/JNPT-Tax-Free-Bonds-March-2013-613x1024.png\" "\\"\\"")