TMI BlogAuthorised entities under Section 10(15)(iv)(h) of the Income Tax Act, 1961 - To issue tax-free, secured, redeemable, non-convertible bonds during the f.y. 2015-16.X X X X Extracts X X X X X X X X Extracts X X X X ..... he entities mentioned in column (2) of the Table given below, to issue, tax- free, secured, redeemable, non-convertible bonds during the financial year 2015-16, aggregating to amounts mentioned in column (3) of the said table, subject to the conditions, namely :- CONDITIONS 1. Eligibility - The following shall be eligible to subscribe to the bonds:- (i) Retail Individual Investors (RIIs); (ii) Qualified Institutional Buyers (QIBs); (iii) corporates (including statutory corporations), trusts, partnership firms, Limited Liability Partnerships, co-operative banks, regional rural banks and other legal entities, subject to compliance with their respective Acts; and (iv) High Networth Individuals (HNIs). 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall apply, for annual payment of interest and in case the schedule of interest payments is altered to semi-annual, the interest rates shall be reduced by fifteen basis points; (vii) the higher rate of interest, applicable to RIIs, shall not be available in case the bonds are transferred by RIIs to non retail investors. 5. Issue expense and brokerage - (i) In the case of private placement, the total issue expense shall not exceed 0.25 per cent of the issue size and in case of public issue it shall not exceed0.65 per cent of the issue size; (ii) the issue expense would include all expenses relating to the issue like brokerage, advertisement, printing, registration etc. 4 [6. Public issue. - (i) Seve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstrate its ability to repay the borrowed funds on the repayment becoming due; (ii) the financing plan referred in sub-paragraph (i) shall be submitted to the Infra-Finance Section, Infrastructure Division, Department of Economic Affairs, Ministry of Finance, within three months of closure of the issue, duly supported by a resolution of the respective entity's Board of Directors. 9. Selection of merchant bankers - (i) Merchant bankers shall be selected through competitive bidding process with transparent pre-qualification criteria and the final selection shall be based on financial bids; (ii) the benefit under section 10 of the Income-tax Act, 1961 (43 of 1961) shall be admissible only if the holder of such bonds reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5000] Explanation: - For the purposes of this notification, (i) Qualified Institutional Buyers shall have the same meaning as assigned to them in the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000. (ii) Retail individual Investors means those individual investors, Hindu Undivided Family (through Karta ), and Non Resident Indians (NRIs), on repatriation as well as non repatriation basis, applying for upto rupees ten lakhs in each issue and individual investors investing more than rupees ten lakhs shall be classified as High Net Worth Individuals. (iii) The bonds issued to NRIs shall be subject to the provisions of notification number FEMA 4/2000-RB, dated the 3td May, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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