Email question on IFCI Bonds

I got this email about the IFCI bonds, and I thought I’d paste my response here as well.

Q.

are these bonds same as shares
can we sell it on market or we have to sell it to the company itself
what is the locking period

A.

No, these bonds are not same as shares. Share prices go up and down every day, and can be quite volatile. Also, there is no guarantee that you will get a certain amount back at the end of the tenure.

These bonds will be locked in for 5 years, so you will not be able to trade them for that much time. They will then be listed on an exchange but will not be as volatile as regular stocks. They will pay you an interest, and also save tax which is not something stocks do. Think of bonds more like a fixed deposit than a stock.

Feel free to weigh in on the response, and add your comments!

35 thoughts on “Email question on IFCI Bonds”

  1. We(Ramesh Chandra/Satyawati Verma) hold 1(one) IFCI FAMILY MILLIONARE BOND 1996(Folio No.:5223-967 Certificate No.:162013 Distinctive No.:163645)Sir my problem is I am unable to unable redeem my bond since I don’t know WHAT IS THE STATUS OF MY BOND also how to proceed for redeeming what formalities are to be completed hence seeking your help as well as guidance please get me out from this problem. also unable to trace their registrar’s email id. so as to send a query to them

    Ramesh Chandra

    Satyawati Verma

  2. Hello,
    I have IFCI FAMILY BONDS purchased on september 1996.
    In that it is written total face value which I can get on september 6 2024. Also early redemption dates along with face values are also writtenBut if I want to redemp early now in december 2014, what is the procedure?
    To whom I should contact (phone number)or go in delhi IFCI office.

    Thanks if you reply me at earliest.
    sheelu

  3. We have 3 bonds for 15 lakhs maturity date on 2015and 2017 onwards but now we want to redeem it now , how can ?
    1 .IFCI 9 080815 INE039A09GH5 ISIN
    2. IFCI 10.25 170817,INE039A09PB9 ISIN
    3.IFCI 10.2 INE039A090S6ISIN

  4. hi,
    I have bought a bond on 2012 with application no 292206 against a checque no 557753 if ICICI bank from my Mumbai address. I moved from that address on december 2012 to Hyderabad and didnt receive any communication like certificate , doc telling bond no even.
    couild you mail me my bond no and status of the bond.I would like to receive certificate to my hyderabad address also.
    please reply me . I have written this application before also but no reply yet.

    1. 1)Pl get your address changed in ICICI Bank & ICICI DIRECT/Demat account first.
      2)Write to the address of the bond for change of address and a copy of the bond.

  5. Dear Sir/ Madam,

    My father had invested in the IFCI Family Bond issued in 06-09-1996 retirement bond can you please guide to know the status of these bonds and also the procedure to redeem.

    Best regards,
    Vishal Shah
    Contact: 9833430132

  6. Sir,

    I had submitted application for issue of bond APPLICATION NO 30940 ON 28-10-2011FOR RS. 20000/- THROUGH HDFC BANK JODHPUR .UP TO WHAT DATE I WILL RECERIVE THE BONDS.

    HOW I CAN CHECK STATUS

    THANKS

    Mangilal jain

  7. I am having Millionaire Bond, Folio No.5423-570, Certificate No.306876, Issue Price Rs.5000. Due to some financial problem, I would like to opt for Early Redemption of this Bond. The due date is 30.9.2011. Kindly advise me formalities to be completed towards this. Regards.
    RB Karajgar
    Mob.No.09425013766
    Present Add : 214, Phase-III, Garden Home, City Centre, Gwalior – 474011 (MP)

    1. Amit – people here have mentioned that some of their offices have allowed to use the receipt as proof so you may try as well. In general, I’ve noticed there is not much consistency in what different offices accept.

  8. Is there an option to check the status of the purchased bonds through the internet as I’ve not received any communication about the same after I’d purhased 4 IFCI bonds.

    1. No, not yet, and in future please use your initials or something as these type of test ids and names have a higher chance of going into spam, and it’s difficult for me to keep track of who I am engaging with.

    1. I don’t think there is any provision to do that yet Kailash. They might come up with a site later that allows you to download allotment advice like the IDFC bond, but it can’t be done yet.

    1. I don’t know Shvet – you could try out asking your company’s tax folks if they will accept it, and if not, then what else can be submitted. I don’t recall anyone else mentioning that they have been allowed to do so.

    1. Deepa – They are unsecured bonds, which means that if the company goes bankrupt, and the shareholders get wiped off then there can be a question mark on the capital and interest.

      Other than that – yes – in normal course the interest rate is assured. All infra bonds so far have been unsecured, and I expect future issues to be unsecured as well.

    1. The thing with this is that initially these bonds were issued as only Demat, which means that there is no TDS, but then later on they added a physical form also, but there is no clarification if there will be a TDS or not, or will there be a TDS on the physical format, so I’m not very confident on which way the tax will be deducted.

  9. When L & T Infra Bond will be issues or credited in Demate Account. I applied for it and I don’t have knowledge about it. So can you please let me know what will happen after apply and when ? Thanks

    1. There’s really no news on when the L&T bonds will be credited, so I can’t say for sure. But if I hear anything I’ll write a post or leave a comment here or something.

    1. My knowledge of how bond listing works in the real world is very limited, so I can’t be sure of what really happens.

      The recent SBI bond issue listed with a 5% gain, and the two most important factors as far as I know is the current interest rate scenario vis-a-vis the coupon on the bond, and the credit quality of the issuer.

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