By How do I redeem IRFC bonds?
Bonds will be automatically redeemed by IRFC on maturity, without the surrender of Bond Certificate(s) and the proceeds would be paid by cheque or NECS/ECS. Demat account is not mandatory, if you don’t have demat a/c, then you will receive physical bond certificate like your Fixed Deposit.
What are IRFC bonds?
MUMBAI : The Indian Railway Finance Corporation (IRFC) has raised funds at 18 basis points lower than that offered by sovereign bonds. The financing arm of the Indian Railways has raised ₹1,375 crore through 20-year bonds at 6.8%. A government paper maturing in 2041 offers an annualised yield of about 6.90%.
Are IRFC bonds taxable?
Some of the public undertakings which raise funds through the issue of tax-free bonds are IRFC, PFC, NHAI, HUDCO, REC, NTPC, and Indian Renewable Energy Development Agency. Tax status: The interest income earned is exempt from tax under Section 10 (15) (iv) (h) of the Income Tax Act, 1961.
Is it safe to invest in IRFC?
According to ICICIdirect.com, as a dedicated finance arm of Indian Railways, IRFC remains a low-risk model with no non-performing asset with a return on equity of 11-12 per cent. Analysts at Anand Rathi Financial Services have also given a ‘subscribe’ rating to IRFC.
What is IRFC tax free bonds?
IRFC is offering retail investors 7.32 per cent annually on the 10-year bonds, 7.53 per cent on the 15-year bonds and 7.5 per cent on the 20-year bonds. Other investors will get 0.25 percentage points less across tenures. Interest will be paid out annually and is exempt from tax.
What are tax free bonds?
What are Tax-Free Bonds. Tax-free bonds are issued by a government enterprise to raise funds for a particular purpose. One example of these bonds is the municipal bonds issued by municipal corporations. They offer a fixed interest rate and rarely default, hence are a low-risk investment avenue.
How do I buy IRFC bonds?
How to subscribe to the IRFC bonds?
- Click here to download the form.
- Fill the application with the required details and documents.
- Along with the IRFC bond application form, draw a cheque in the name of- IRFC Capital Gain Bonds.
Is IRFC worth holding?
The share is worth holding long term, at least for three to four quarters, says Gaurav Garg of CapitalVia Global Research. He expects IRFC to give good returns.
Is IRFC undervalued?
Considering its financials and prospects, the issue seems to be an undervalued offering. However, if the government or MoR changes its policies regarding IRFC, then its profitability can get affected. “Attractive valuation with healthy return ratios make us optimistic on the long term prospects for IRFC,” it said.
Which is the latest issue of IRFC tax free bonds?
IRFC Tax Free Bonds is the latest issue which is going to be open for subscription from 8th December 2015 to 21st December 2015. During the last few months, NTPC (National Thermal Power Corp) , PFC (Power Finance Corporation) and REC ( Rural Electrification Corp ) have come up with Tax Free Bond issues.
What is the coupon on Indian Railway Finance Corporation bonds?
Indian Railway Finance Corporation (IRFC) today said it has sold USD 750 million worth of dollar-denominated bonds to overseas investors priced at a coupon of just 2.80% per annum.
Who is the chairman and managing director of IRFC?
Amitabh Banerjee, Chairman and Managing Director,IRFC, said, “IRFC is a well-known name in the foreign bond issuance. The amount is a part of our $4 billion global term note programme. We will be looking to raise the rest of the amount by the end of this fiscal.
How does Indian Railways Finance Corporation Limited work?
PRIVATE PLACEMENT OF SECURED, NON-CONVERTIBLE, NON-CUMULATIVE, REDEEMABLE, TAXABLE BONDS IN THE NATURE OF DEBENTURES OF Rs. 10,000/- EACH FOR CASH AT PAR ON “ON TAP” BASIS WITH BENEFITS UNDER SECTION 54EC OF THE INCOME TAX ACT, 1961. 1. Details for Online Payment thru RTGS / NEFT