{"id":4061,"date":"2013-03-11T12:25:32","date_gmt":"2013-03-11T06:55:32","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=4061"},"modified":"2014-06-20T08:48:02","modified_gmt":"2014-06-20T03:18:02","slug":"national-housing-bank-nhb-tax-free-bonds-march-2013-review","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/national-housing-bank-nhb-tax-free-bonds-march-2013-review\/","title":{"rendered":"National Housing Bank (NHB) Tax Free Bonds &#8211; March 2013 &#8211; Review"},"content":{"rendered":"<p style=\"text-align: justify;\">The bonds market is already abuzz with Tax free bonds and now\u00a0The National Housing Bank (NHB)\u00a0is coming out with its tax free bonds for Rs 3,750 crores.\u00a0Here are the details<\/p>\n<h3 style=\"text-align: justify;\">NHB Tax Free Bonds &#8211; Significant Points:<\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong>Offer Period:<\/strong>\u00a0March 11 \u2013 March 15, 2013 (the offer can be pre-closed on full subscription)<\/li>\n<li><strong>Annual Interest Rates for Retail Investors:<\/strong>\n<ul>\n<li>7.32% for 10 Years<\/li>\n<li><em>The interest rates are 6.82% for QIBs and corporate subscribers.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><strong>Price of each bond:<\/strong>\u00a0Rs 10,000<\/li>\n<li><strong>Minimum Investment:<\/strong>\u00a01 Bond (Rs 10,000)<\/li>\n<li><strong>Max Investment Limit for Retail Investor:<\/strong>\u00a0Rs 10 Lakhs<\/li>\n<li><strong>Reservation:<\/strong>\u00a040% reserved for retail investors<\/li>\n<li><strong>Rating:<\/strong>\u00a0CARE AAA and CRISIL AAA<\/li>\n<li><strong>Allotment:<\/strong>\u00a0First Come First Serve<\/li>\n<li><strong>Listing:<\/strong>\u00a0Bonds would be listed on NSE and will entail capital gains tax on exit through secondary market<\/li>\n<li>You can apply for these bonds in the\u00a0<strong>Demat or the physical format<\/strong>, but for trading\u00a0you need to have them in the Dematerialized format.<\/li>\n<li><strong>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%. On sale or transfer, the benefit is lost and rates reduce to that applicable for other investors (6.82%).<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\">Why you should invest?<\/h3>\n<ol style=\"text-align: justify;\">\n<li>The bonds are secured to the full extent and National Housing Bank\u00a0is subsidiary of RBI.<\/li>\n<li>The interest rates on future tax free bonds might be lower as RBI might moderate its policy rates further<\/li>\n<li>Reduction in interest rates would means an increase in the price of bonds thus giving capital gains<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\">Why you should not invest?<\/h3>\n<ol style=\"text-align: justify;\">\n<li>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<li>Even if you want to invest in Tax Free Bonds &#8211;\u00a0<a href=\"http:\/\/www.apnaplan.com\/hudco-tax-free-bonds-tranche-ii-march-2013-review\/\">HUDCO Tax Free Bonds<\/a>\u00a0are better option. If you are not comfortable with HUDCO rating you can go with <a href=\"http:\/\/www.apnaplan.com\/pfc-tax-free-bonds-feb-2013-review\/\">PFC<\/a>, <a href=\"http:\/\/www.apnaplan.com\/rec-tax-free-bonds-tranche-ii-march-2013-review\/\">REC<\/a> or <a href=\"http:\/\/www.apnaplan.com\/irfc-tax-free-bonds-tranche-ii-feb-2013-review\/\">IRFC<\/a> Tax Free bonds which is offering 6 basis points more for 10 years tenure.<\/li>\n<li>If you are not in higher tax slab of 20% or more<\/li>\n<li>These bonds\u00a0<strong>don&#8217;t make much sense for NRIs<\/strong>\u00a0as they can\u00a0get better returns on\u00a0<a href=\"http:\/\/www.apnaplan.com\/tag\/nre-fixed-deposit\/\">NRE fixed deposits<\/a>\u00a0with banks that offer rates of around 9 per cent, tax-free<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\">National Housing Bank\u00a0Tax Free Bonds &#8211;\u00a0Who should apply?<\/h3>\n<p style=\"text-align: justify;\">As I said above, I don&#8217;t know why anyone should opt for these bonds.\u00a0<a href=\"http:\/\/www.apnaplan.com\/hudco-tax-free-bonds-tranche-ii-march-2013-review\/\">HUDCO Tax Free Bonds<\/a>\u00a0are better option.<\/p>\n<h3 style=\"text-align: justify;\">About National Housing Bank:<\/h3>\n<p style=\"text-align: justify;\">National Housing Bank (NHB) is a statutory organization that was established on July 9, 1988. It is the apex level financial institution for the housing sector in the country and a wholly owned subsidiary of the Reserve Bank of India.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bonds market is already abuzz with Tax free bonds and now\u00a0The National Housing Bank (NHB)\u00a0is coming out with its tax free bonds for Rs 3,750 crores.\u00a0Here are the details NHB Tax Free Bonds &#8211; Significant Points: Offer Period:\u00a0March 11 \u2013 March 15, 2013 (the offer can be pre-closed on full subscription) Annual Interest Rates [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[31,30,340],"tags":[202,2165,2166,199,2167],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/National-Housing-Bank-NHB-Tax-Free-Bonds-March-2013-Review.png",576,341,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/National-Housing-Bank-NHB-Tax-Free-Bonds-March-2013-Review-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/National-Housing-Bank-NHB-Tax-Free-Bonds-March-2013-Review-300x177.png",300,177,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/National-Housing-Bank-NHB-Tax-Free-Bonds-March-2013-Review.png",576,341,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/National-Housing-Bank-NHB-Tax-Free-Bonds-March-2013-Review.png",576,341,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/National-Housing-Bank-NHB-Tax-Free-Bonds-March-2013-Review.png",576,341,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/National-Housing-Bank-NHB-Tax-Free-Bonds-March-2013-Review.png",576,341,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/03\/National-Housing-Bank-NHB-Tax-Free-Bonds-March-2013-Review.png",120,71,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"The bonds market is already abuzz with Tax free bonds and now\u00a0The National Housing Bank (NHB)\u00a0is coming out with its tax free bonds for Rs 3,750 crores.\u00a0Here are the details NHB Tax Free Bonds &#8211; Significant Points: Offer Period:\u00a0March 11 \u2013 March 15, 2013 (the offer can be pre-closed on full subscription) Annual Interest Rates&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/4061"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=4061"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/4061\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/4909"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=4061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=4061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=4061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}