{"id":4091,"date":"2013-03-11T17:20:49","date_gmt":"2013-03-11T11:50:49","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=4091"},"modified":"2014-06-20T08:43:25","modified_gmt":"2014-06-20T03:13:25","slug":"dredging-corporation-of-india-tax-free-bonds-review-march-2013","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/dredging-corporation-of-india-tax-free-bonds-review-march-2013\/","title":{"rendered":"Dredging Corporation of India Tax Free Bonds &#8211; Review &#8211; March 2013"},"content":{"rendered":"<p style=\"text-align: justify;\">The bonds market is already abuzz with Tax free bonds and now Dredging Corporation of India\u00a0is coming out with its Rs. 500\u00a0crore public issue of tax free secured redeemable non-convertible bonds.\u00a0Here are the details<\/p>\n<h3 style=\"text-align: justify;\">Dredging Corporation of India\u00a0Tax Free Bonds &#8211; Significant Points:<\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong>Offer Period:<\/strong>\u00a0March 7 \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>7.47% for 10 Years<\/li>\n<li><em>The interest rates are 6.97% for HNIs, QIBs and corporate subscribers.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><strong>Price of each bond:<\/strong>\u00a0Rs 1,000<\/li>\n<li><strong>Minimum Investment:<\/strong>\u00a05 Bonds (Rs 5,000)<\/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>\u00a0BWR AA+ and \u00a0CARE AA<\/li>\n<li><strong>Allotment:<\/strong>\u00a0First Come First Serve<\/li>\n<li><strong>Listing:<\/strong>\u00a0Bonds would be listed on both NSE and BSE 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 7.47% depending on tenure. On sale or transfer, the benefit is lost and rates reduce to that applicable for other investors (6.97%).<\/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 Dredging Corporation of India\u00a0is a Government of India undertaking<\/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 at similar credit rating.<\/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;\">Dredging Corporation of India\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 as it offers 7.53% vs 7.47% by \u00a0Dredging Corporation of India.<\/p>\n<h3 style=\"text-align: justify;\">About Dredging Corporation of India:<\/h3>\n<p style=\"text-align: justify;\">Dredging Corporation of India\u00a0is a Govt. of India undertaking and is a Mini Ratna Category I PSU. \u00a0The Company provides dredging services. The Company caters to the dredging requirements of the Haldi\/Kolkata Port. The Company also caters to the maintenance of dredging requirements to other ports, Indian Navy. The Company provides capital dredging for creation of new harbors, deepening of existing harbors or maintenance of various ports.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bonds market is already abuzz with Tax free bonds and now Dredging Corporation of India\u00a0is coming out with its Rs. 500\u00a0crore public issue of tax free secured redeemable non-convertible bonds.\u00a0Here are the details Dredging Corporation of India\u00a0Tax Free Bonds &#8211; Significant Points: Offer Period:\u00a0March 7 \u2013 March 15, 2013 (the offer can be pre-closed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4906,"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 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bonds market is already abuzz with Tax free bonds and now Dredging Corporation of India\u00a0is coming out with its Rs. 500\u00a0crore public issue of tax free secured redeemable non-convertible bonds.\u00a0Here are the details Dredging Corporation of India\u00a0Tax Free Bonds &#8211; Significant Points: Offer Period:\u00a0March 7 \u2013 March 15, 2013 (the offer can be pre-closed&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/4091"}],"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=4091"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/4091\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/4906"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=4091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=4091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=4091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}