This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at skukreja@investitude.co.in
It has been a very long time since Deepak suggested Manshu and me to cover a post having post-listing details of tax free bonds issued during last three financial years. Like a large number of investors, he too has been struggling to keep himself updated with different interest payment dates, scrip codes, scrip ids, ISIN numbers of these bonds, which of these bonds carry step-down feature and many such things.
This is what Deepak had to say:
Deepak October 28, 2013 at 4:28 pm
Hi Shiv, (I have given the same suggestion to Manshu. Please speak to him as well)
There are a number of tax free bonds in the market every year, for the past 3 years.
The interest rates are different for each bond in each year!
What makes it more complicated is that the interest rates are different for the same bond if you have got a direct allotment or bought it from the stock market.
Each one comes with a different date of interest payment.
With all this, it has become really difficult to track the interest payment. I also find it difficult to link the bonds to their Scrip ID and Code because of the long list of bonds in my statement.
I also don’t know in which month will I receive the interest of the bonds that I purchased last year.
Would it be possible for you to have a table with the following details as one of your articles?
Company
Year of Issue
ISIN
Scrip Id
Scrip Code
Rate of Interest (Direct Allotment)
Rate of Interest (If purchased later)
Due date of interest
And anything else that you find appropriate…
I’m certain it would benefit a lot of people.
Regards,
Deepak
As both of us have been keeping very busy for the past many weeks, we were not getting enough time to cover this post and work on Deepak’s requirements. As I just got time to cover this post, here is the table which should help most of us to keep ourselves updated with the deemed date of allotment of these tax-free bonds, their interest payment dates, BSE codes, NSE codes, maturity dates and their respective coupon rates applicable to the retail investors as well as other investors.
Tax-Free Bonds issued during Financial Year 2013-14
(Note: Table updated on March 31, 2014)
Deepak wanted us to cover these details for all the tax free bonds issued during the past three years. But, to begin with, I have covered these details only for the current financial year i.e. FY 2013-14. I want to experiment this post with the current financial year and will cover the details of previous years’ tax-free bonds separately in two other posts. I’ll also keep updating this table as and when the remaining companies launch their respective issues and get these bonds listed on the stock exchanges.
I would also request you to share your views regarding this post and suggest some more ideas for the other two posts so that I can cover more such details about these listed bonds.
I am interested in investing in Tax free bonds in the secondary market. Can I have details on how this is possible. I also want to know the difference between buying in the secondary market and that what I have allotted initially. Detailed reply is highly appreciated, thanks.
Hi Ramesh,
You’ll have to pay brokerage & nominal taxes for buying these bonds from the secondary markets. Also, as the bond yields have fallen since these bonds got issued, you’ll have to pay a premium for these bonds. Rest everything remains the same.
Great info! But, my broker Angel doesn’t have Bonds listed with equity! Plz suggest.
Hi Mahesh,
You should contact the customer care of Angel Broking and ask them how to buy these bonds. Just keep BSE/NSE codes handy with you.
Excellent article,
Highly informative.
Thanks for keeping it updated!
Thanks Natarajan!
Hi Shiv, I’m considering buying some tax-free bonds from the secondary market in the next 2 weeks. Am OK to consider non AAA rated bonds as well since coupon rates offered may be higher without much difference in security since these are mostly top PSUs.
Do you have any recommendations where the coupon rate could be a good deal?
Thanks,
SG
SHIV
This really is a fantastic input.Immense thanks for the efforts you have taken.May God bless you.
Thanks a lot for your encouraging words Mr. Ramamurhty !!
Taxability at the time of alotment.
Is interest received along with the allotment taxfree?
The interest is in two parts.
One part is interest received on refund amout, which is at a lower rate of 5% and other part is interest on allotment amount which is at the coupon rate.
Hi Nitin,
Interest received prior to the allotment date, whether it is on the refund amount or on the allotment amount, is taxable.
thank you shiv. i found the article most useful. where can i find the 2011-12 and 2012-13 posts
Thanks Ajoy !!
Here you have the required link:
http://www.onemint.com/2013/07/04/interest-payment-dates-of-tax-free-bonds-issued-during-fy-2011-12-2012-13/
Is interest received along with the allotment taxfree?
The interest is in two parts.
One part is interest received on refund amout, which is at a lower rate of 5% and other part is interest on allotment amount which is at the coupon rate.
I am new in this finance and investment world. Very happy to see the list and details about non taxable bonds.
Thanks.
We welcome you to our community of readers !!
BSE Codes of REC – T2 are wrong. They are same as of Ennore Port. Kindly rectify.
Thanks Cindy for pointing this out, I’ve rectified the mistake in the table above.
This is exactly what i was looking for my financial planning.
Thanks a lot.
That’s great !! 🙂
Very useful compilation of data. Thanks. One more col. indicating “Whether NRIs eligible” can add value. NRIs will be able to subscribe from the secondary mkt if not already subscribed earlier.
Only a suggestion please. Otherwise, the data compiled is rich.
Thank you M O Pannikkar for the suggestion !! But, the problem is that we don’t have enough space to incorporate one more column in the table. Sorry for that.
Thanks..yeah I need to get this ECS thing updated with the registrar.
Hi- Has anyone received interest for NHPC bonds due on 1st April?
Awaiting my cheque 🙁
Hi Sandeep,
My parents have received the interest amount credited directly to their bank accounts.
Dear Shri. Kukreja,
A request: anytime you are able to, can you please make a chart for the previous years’ TFB’s (FY11, FY12 and FY13)? I have a few bonds such as
HUDCO (8.35 BD 05MR27 LOA UPTO 31MY12), PFC (SR-II 8.3 BD 01FB27 LOA UPTO 08MR12) and REC (7.38 BD 19DC27) for which it would be useful to have such data.
Many thanks
Hi Rama,
Here you have the link to the post which has the required relevant data:
http://www.onemint.com/2013/07/04/interest-payment-dates-of-tax-free-bonds-issued-during-fy-2011-12-2012-13/
Hello
Thanks for the table above. I have a couple of suggestions/queries:
1. How is it possible to copy this table and paste it in Excel as a table, I can only paste it like a picture/bitmap. I had to manually update each record in excel which is quite tedious.
2. Can this information be updated with the respective ISIN, the reason being, the ISINs are reflected in the demat statements delivered to us, the BSE/NSE codes are not, hence it is a bit difficult to reconcile.
Thanks in advance
Alka Khare
Thanks Alka !!
1. There is no provision on this website to export this table to an excel sheet. You can only copy and save this table on your system.
2. Actually, there is no space for me to incorporate ISIN in the table above, otherwise I would have added ISIN & 1-2 more things to it.
kindly update the interest payment dates .
Sure Puneet, I’ll update it in a day or two.
Mr Shiv ,
because of your above chart i made good profit in HUDCO 874 which
i purchased last week for 1005 and today buyers rate 1035
(3 % gain in 1 week ) it was available with 5 month interest at 1005
and i bought worth 10 lacs .. if you update the chart we can find more
bargain hunters … thank you for your help.
Hello Dr. Agarwal,
I have updated the table above, please check. Also, I am really glad to know that this table helped you in making profits in such a short term. I hope this table helps you and other readers in making long term profits as well !!
thank u dear shiv
You are welcome Dr. Puneet!
Really good stuff man. Much Appreciated.
a quick query- The interest paid on these bonds, is there an option to have an ECS facilty for coupons? I have so far received for REC & NHAI via cheques?
Thanks Sandeep !!
If you are receiving cheques for your interest payments, then you need to contact the Registrar asking them to get your bank account linked for the ECS facility. For this you’ll have to fill an updation form and provide them a cancelled cheque.
Hi Shiv- I have tried contacting the registrar Karvy via emails, but haven’t received any reply (followed up couple of times) from them. Is there a form that I can simply download and send them?
Mr. Kukreja, your articles are execllent, useful and timely. I always wait for your articles to make the decisions. Keep it up!
Thanks Virupaxappa for your encouraging words !!
Whenever possible for you Mr Shiv .
pl. give Comparison Chart of of these Issues, mentioned by Mr sreedhar –
1)IREDA 1000 CR 8.8% FEB 17 AAA
2)ENNORE PORT 500 CR 9.0% FEB 3 WK AA
3)HUDCO 285 CR 8.9% FEB 3 WK AA+
4)IIFCL 2800 8.8 % FEB 17 AAA
5)IRFC 4800 CR 8.8% FEB LASTWEEK AAA
Sreedhar, can you share the link that provides information about these rates.
Sure Dr. Agarwal, I’ll try to cover the comparative analysis of these issues as and when two or more than two issues are opened together.
I hear IREDA rates are as follows:
8.41% p.a. For 10 yrs
8.80% p.a. For 15 yrs & 20 yrs
following is the tentative schedule of remaining bonds:
1)IREDA 1000 CR 8.8% FEB 17 AAA
2)ENNORE PORT 500 CR 9.0% FEB 3 WK AA
3)HUDCO 285 CR 8.9% FEB 3 WK AA+
4)IIFCL 2800 8.8 % FEB 17 AAA
5)IRFC 4800 CR 8.8% FEB LASTWEEK AAA
15 YRS & 20 YRS rates are same
Thanks a lot Sreedhar for this info !!
Shreedhar, Only IREDA prospectus is available. Where did you get rate information on Ennore Port, HUDCO, IIFCL, IRFC.
That’s correct SB, the prospectus has been filed and the rates are 8.41% with the 10-year option and 8.80% with the 15-year & 20-year options.
Shiv, can you also share the link where you found out that prospectus has been filed.
Hi Raj,
Here you have the link to IREDA’s tax-free bonds issue prospectus:
http://www.akcapindia.com/WebSiteDocuments/IREDA_Bond_Issue_Tranche_Prospectus_Upload_Version_February_10_2014.pdf
thanks a lot Shiv