TMI BlogDuring The Financial Year 2012-13 - Tax-Free, Secured, Redeemable, Non-Convertible BondsX X X X Extracts X X X X X X X X Extracts X X X X ..... the financial year 2012-13. Tax-free, secured, redeemable, non-convertible bonds, aggregating to amounts mentioned in column (3) of the said table, subject to the conditions specified hereunder:- (a) Eligibility. - The following shall be eligible to subscribe to the bonds:- (i) Retail Individual Investors (RII); (ii) Qualified Institutional Buyers (QIBs); (iii) Corporates; (iv) High Net Worth Individuals (HNIs); (b) Tenure of bonds.- (i) In the case of India Infrastructure Finance Company Limited (IIFCL), the tenure of the bonds shall be for ten, fifteen or twenty years; (ii) in other cases, the tenure of the bonds shall be for ten or fifteen years ; (c) Permanent Account Number.- It shall be mandatory for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are transferred, except in case of transfer to legal heir in the event of death of the original investor; (e) Issue expense and brokerage.- (i) In the case of private placement, the total issue expense shall not exceed 0.2% of the issue size and in case of public issue it shall not exceed 0.5% of the issue size; (ii) The issue expense would include all expenses relating to the issue like brokerage, advertisement, printing, registration etc.; (iii) The brokerage, in cases of different categories, shall be limited to the following ceilings:- (I) QIB - 0.05% (II) Corporates-0.1% (III) HNI - 0.15% (IV) RII - 0.75%; (f) Public issue.- (i) At least 75% of the aggregate amount of bonds issued by each entity shall be raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resolution of the respective entity's Board of Directors; (i) Selection of merchant bankers.- Merchant bankers shall be selected through competitive bidding process wherein the only technical criteria for pre-qualification shall be the total funds mobilised through public issue of debt and equity together over the past five years and after pre-qualification, the final selection shall be based on financial bids; (j) The benefit under the aforesaid section 10 shall be admissible only if the holder of such bonds registers his, her or its name and the holding with the entity. Table S. No. (1) Entities (2) Aggregate amount of bonds (3) 1. National Highways Authority of India Rs. 10, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. FEMA 4/2000-RB dated 3rd May, 2000 and Notification No. FEMA 20/2000-RB dated 3rd May, 2000 , issued under clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 , as amended from time to time. (iv) The credit rating referred to in paragraph (d) of this notification shall mean the credit rating, as assigned by a credit rating agency which is approved by the Securities and Exchange Board of India as well as the Reserve Bank of India and where an entity has been rated differently, by more than one rating agency, the lower of the two ratings shall be considered. [F. No. 178/60/2012-(ITA.1)] SURABHI SHARMA, Under Secy. (ITA.I) ------------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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