Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: ACCOUNTING STANDARD :: cpt :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: empanelment :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India
 
 
« General »
 Supreme Court agrees to hear plea on imposition of service tax on lawyers
 India's tax department signs 3 advance pricing agreements
 Income Tax Dept to probe deeper into suspicious bank accounts
 Modi may lower taxes to spur demand in his budget sops
 Tax breather for foreign investors: All you need to know
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week

NHB tax free bond: Why is it attractive?
March, 11th 2014

Most of the money being raised through tax free bonds in this last month of the financial year are primarily from companies which have done it earlier. After IRFC, HUDCO, REC and others, National Housing Bank too is raising funds now through its second tranche of tax free bonds. The bond is already seeing a huge interest from the investors which can be seen from the fact that NHB is closing issue early tomorrow.

Let see what is on offer by the company and why does NHB favored by investors-

About The Organization
National Housing Bank is wholly owned by Reserve Bank of India. The primary objective of NHB is to promote financial institutions which are in housing sector and support them. Established in 1988, it has been doing well meeting its objective of a sound housing finance system in the country. The company has been going strong on financials too with its refinance distribution and profits, both registering a higher growth.

The Bond Issue
NHB is raising Rs 250 crore through this tax free bond issue. The company can retain oversubscription upto Rs 1000 cr and has an early closing option. The bond is rated AAA by CRISIL, AAA by ICRA and AAA by care which is a high rating and a stable outlook. 40% of the issue size is reserved for retail investors and the bonds are allotted on first come first serve basis.

The face value of the bond is Rs 5000 each and one can apply even for a single bond. These are available for 10, 15 and 20 years horizon. One can apply in either physical or demat form but only in multiple of 1 bond. Post-closing of the issue, NHB bonds will be listed at National Stock Exchange within 12 working days , where they will be available for trading to investors.

Interest Rates
NHB is offering higher interest rates to retail investors. It is 8.50%, 8.93% and 8.90% or 10, 15 and 20 years horizon. The interest will be paid annually to the investor which will start from one year from the date of allotment.

Why You Should Invest?
The attraction to NHB bonds has its reasons. The organization status and its financials provides a high amount of safety to investors. The performance of the company in promoting housing financial sector is highly commendable.

One of the main features of the bond is that it is offering 8.93% rate of interest to retail investors which is quite high. The listing on stock exchange also offer a no-lockin and provides a higher liquidity if investors want to exit before the mandated term. Moreover, the tax free nature of the interest makes yield higher for investors who are in the highest tax bracket, reaching to almost 12%.

Since the interest is payable annually, the option is highly attractive for investors seeking regular income i.e. retirees. The 40% reservation to retail investors also ensures that many get their allotment. Keeping in mind the reinvestment and inflation risk, these tax free bonds by NHB are an attractive investment which is surely recommendable.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions