Also read about the REC Infrastructure bonds here or the IDFC Infrastructure Bonds Tranche 2 here.
The IDFC Infrastructure Bond post has thrown up some interesting questions from readers which were not part of the post itself, and while I am replying to them in comments – I thought I’d do a fresh post with 5 questions that I thought deserved a post of their own.
1. Is opening a demat account compulsory for investing in the IDFC Infrastructure bonds?
No, it is not.
When this scheme opened there was just the option to invest in it if you had a demat account, but some changes have been made (pdf) and opening a demat account is not compulsory now. You can buy them in physical form also. Their website tells you how to do this.
You can also subscribe to the Bonds in physical form by following these simple steps:
- Don’t fill up the demat details in the application form
- Compulsorily provide the following three documents with the application form:
- Self-attested copy of the PAN card;
- 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.
- 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 Government of India; or
- Valid driving license issued by any transport authority of the Republic of India; or
- Electricity bill (not older than 3 months); or
- Landline telephone bill (not older than 3 months); or
- Valid passport issued by the Government of India; or
- Voter’s Identity Card issued by the Government of India; 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; or
Letter from a recognized public authority or public servant verifying the identity and residence of the Applicant.
2. Is the interest earned from the IDFC Infrastructure bond tax-free?
While IDFC Infrastructure bonds may not attract TDS – the interest itself is not tax – free. It’s only the Rs. 20,000 you get reduced from your taxable salary that helps save tax.
3. Has the closing date to invest in IDFC Bonds extended?
Yes, the closing date has been extended from 18th October to 22nd October.
4. When do the bonds start trading in the stock exchange?
After the initial lock – in period of 5 years is over, the bonds will list on the NSE and BSE, and start trading there.
5. Which option has the highest yield?
Yield table from the website. Now keep in mind this is just the yield, the lock in periods differ between various series, and that needs to be taken into account while making your decision, however since my earlier post didn’t have this yield table I am including it here.
Click here to read the earlier review of the IDFC Infrastructure Bond.
I had applied for idfc bonds in physical form and had filled the correct present residential address with proper proof. Since I was not receiving the hard copy, I made an enquiry upon which soft pdf copy of the bond was e-mailed to me. It is showing my old residence address. I don’t know from where ‘Karvy’ or ‘IDFC’ has got the same and I also want to know why they have sent the same to my old address. Please let me know as to who’s going to compensate me for the loss of time in my having the address changed due to no fault of mine.
I am facing the same issue. My address has been entered wrong there. Do not how to get it updated so that i can receive the certificate.
For starters – you can get the allotment advice letter for tax proof with the way that Shubho has mentioned. Here is the link for the letter:
http://karisma.karvy.com/investor/jsp/IDFC-APP.jsp
Check the address associated with your demat account Karishma – that is one place where it might have not changed, and you may want to change that. If you find out that that was indeed the case do leave a comment, so that others can benefit from your knowledge. Thanks.
I have two demat accounts, at one of the places i have not changed the address since i am no longer using the same and in the other one it correct i.e. the new address. What I want to know is that if I have applied for physical bonds and i have submitted address proofs – driving license etc then why is the demat account address (that too old one) put on my idfc bond?
I’m not saying that it is the cause, just that I thought it might be a possible source of info for them. I don’t know how that aspect works though.
How can I buyt Infrastructure bonds without a Demat account? Please provide the relevant information.
Regards
Bhaskar
Bhaskar – you can buy the form or download it online, and then submit it at a bank branch that’s accepting them along with some other residence and personal proof documents. IDFC issue is now over, but you can subscribe to IFCI or wait for another issue to come out in the future.
I have no proof for income tax purpose except demat account statement.
Please provide me any proof for income tax purpose.
Please read the comment thread Ashok, as this issue has been addressed quite a few times already. Thanks.
I have received my bonds in one of the Demat accounts that i hold. I now wish to close that demat account and transfer the bonds to my another demat account. My DP participant says that he cant do so since the bond has a lock in period of 5 yrs. Is this true? Is it possible to transfer the bonds from one of my demat account to another? Pl clarify!! I think it can be done….
Sorry, but I’m not aware of a way to transfer them from one DP to another. What you could do is talk to the new DP that you’re about to open the account with because they are going to be much keener to get your business, and may find a way for you to do them. Also ask them if there is a way to turn this demat holding into physical holding.
I have not got the broken interest from the time of applying to the allotment date,please clarify,I have sent many e mail to Karvy but no reply.
IFCI infrastructure bond is closing on december 31 2010. It is a very good opportunity to claim tax exemption on additional Rs 20,000. Infra bond is better option than SIP for 5 years.
hi, i have applied idfc bond wor 20000rs ,i dont have demat account , till now ihave not recived physical certificate, please let me what is happening
The best thing to do is to find the nearest Karvy computershare office (http://www.karvycomputershare.com/) and call them up. You can also check your application status on the site http://mis.karvycomputershare.com/ipo/ using your Eight (8) digit IDFC Long term infrastructure bond application number. this should be on the top right corner of the receipt of the application you got from your Agent. You can also try calling up Toll free 1-800-3454-001 or +91.22.43422885.
Hope this helps,
Shubho
Dear sir,
I have applied for the infrastructure bond through HDFC bank, I dont have D-mat account, for the same the amount of 20000 has been deducted from my account, Ok but i doesent get any receipt or allotment copy or any proof for the same, please help.
You applied for IDFC? Because if that’s the case then you should have gotten something long time ago as many people have received the allotment advice letter. If you have the application number then try this link which was shared by a user to see if you got something or not. And please do contact IDFC for the certificate.
Hi,
I have not received physical copy of my certificates. Anyone got the certificates yet????
Hi Meena,
I got the allotment letter & certificate. I think you should follow up with the agent or karvy Comp. Pvt. Ltd.
You can also check the status of the application on
http://mis.karvycomputershare.com/ipo/
Thanks
Vinay
Hi. I purchased IDFC infra bond through sharekhna. i am very new to sharekhan. Can anyone help me to find how and where I can check my infra bond on sharekhan. Thanks in advance
I have been allotted IDFC bonds for Rs 20000. My Accounts deptt needs proof of investment . As I have done all transactions through HDFC securities account on Telephone,, how do I get physical copy of as investment proof from IDFC ?
You can see this post for how people are dealing with this issue:
http://www.onemint.com/2010/12/06/email-question-tax-proof-for-demat-infrastructure-bonds/
after tring many time finally karvy’s people pick up the call, and mention that in the last i need to submit some document again. My Questiong to them they the hell they not contact me. in the last moment they asking for doucment which i already submit along with the application.
🙁
now again
That sucks man. Hope you have a better experience this time.
I have seen from the site that I have been allotted the bonds applied for. But yet to get the same Can IDFC help ????
i got bond allotment advice on december 7 th , i applied physically soon you will also get it
You can check out this post I did to see how people are dealing with this issue.
i was applied for idfc bond, i have received the same, but there is some mistake in applicant name
printed name is manui taneja but correct name is manvi taneja, wt i have to do in this case , plz help me
Hi Munish,
I think you need to send your Identity & residence proof again to address given the letter which you must have received from Karvy comp. Pvt. Ltd.
Thanks
Vinay
if I get bond in demate how can i claim for tax rebate
Mohan,
People have been advised by their brokerages that they can use the print outs of Demat page that shows the bond allocation, and if they happen to send you an allocation advice form or something then you can use that as well.
got reply from einward.ris@karvy.com saying
“We have perused the record and pleased to inform that your application was successful
in getting allotment of bonds which have since been credited to your following de-mat
account. and physical bond certificate has been despatched to you on 12/11/2010”
you can also write and get confirmation from them. Its different issue that I am still in waiting to get physical copy
Thanks for your comment Vikram – much appreciated.
Not yet received the physical copy, No reply from any IDFC mail ID. Dont know what to do. Has anyone received physical copy of IDFC infra bonds yet??
Most people have received it Vikas, so I think you should check at the Karvy link shared above to see if you got the bonds allotted or not.
My friend and I had bought IDFC Bonds from the HDFC Bank Branch at Anand Vihar, New Delhi. We had bought bonds worth Rs. 20000/- each. We both had opted for 4 bonds each of Series 2. We had bought the bonds in paper form, since we do not have Demat Account. We are yet to receive the bond certificates. The Money has been debited from our respective accounts.
We have written mails to the following ids and we get read receipts but there is no response:
MichaelG@karvy.com
Jose.Y@karvy.com
SonalyG@karvy.com
Delhimfd@karvy.com
IDFC_infra@karvy.com
einward.ris@karvy.com
The following site does not show the status of our application
http://mis.karvycomputershare.com/ipo/
No one picks up on the number 1-800-3454-001 or the Delhi contact number +91.11.43681700 of Karvy Computer Share Pvt. Ltd.
Can you please guide us to someone who can guide us on the same.
What’s the message that you see at the Karvy link Shubhabrata – I think there was some error in your application or something, and it didn’t get allotted.
You need to check with the person at the bank who helped you apply for the bond to get your money refunded.
Manshu,
I do not see any message. The money was deducted from our accounts and it has not been credited back.
Shubho
To me it really looks like a case of an erroneous application Shubho….try and grab a hold of the agent or person who sold you this and inquire about the refund. I’m sorry that I can’t be any more assistance than that.
Hi Manshu,
finally a good soul called back and has confirmed that my Bonds have been allocated and I am able to see them on the site too. Just wanted to keep you informed.
Shubho
I really appreciate that Shubho, and I’m glad that I was wrong about your getting the allotment. Awesome! 🙂
Same problem. money has been deducted from my account. till now i am not able to see my allotement status in karvy site of my IDFC bonds. i applied through online. i have demat account too. Please help me with the information to whom do i contact. thanks a lot for your help on this
I’ve shared the link in the above thread a few times, so please go ahead and browse through the comments and you’ll find it.
Try to find the status of ur bond at http://mis.karvycomputershare.com/ipo/
Write a mail to einward.ris@karvy.com to know the status of your bonds. If you aplied in electrinic mode they will issue only Allotment Advice letter(no Physical bond)
There is no response from IDFC or Kaveri about the bond issue. I am yet to get the physical bonds yet from them inspite of repeated mails there is no response.
M.Ramakumar
In indiainfoline demat account, it is not visible under “holding” till date.
So , please try the following navigation.
Under Depository , use ” transaction” menu and figure out the credit by giving from and to date of transaction. The bonds have been credited on 13/11.
ideasmoney.blogspot.com
I have applied for IDFC bond . I have not got credit in my D- Mat account, pl advice procedure to be followed to obtain Credit. Money already debited from account on 14th Oct, 2010.
Please contact your agent at the earliest to get the refund back, as it has been already quite some time that the bonds were allotted.