IFAs can advise “IDFC Long-term Infrastructure Bonds – Tranche 2” to their clients who are looking to generate secured income with added tax benefits.
IDFC Long-term Infrastructure Bonds – Tranche 2 will be open till 25 February 2012. Bondholders can avail the additional Rs. 20,000 deduction under section 80CCF of the Income-tax Act (apart from the Rs. one lakh deduction under section 80C)
Who can apply: Resident Indian individuals (minors not eligible) and HUFs
Application size: Minimum of two bonds and multiples of one bond thereafter. Each bond has a face value of Rs. 5,000
Availability: In dematerialized form or in physical form
Bond Features:
Who can sell the product?
- Registered stock-brokers with any Stock Exchange along with their respective sub-broker
- Banks and brokers selected by the issuing company
How can an IFA get registered to sell the product?
- An IFA, if wishes to sell the product, needs to sign the sub-broker agreement with a stock-broker.
Tentative Brokerage structure:
On the allotment amount, a brokerage of 1.25% is offered upfront.Also, a minimum of Rs. 100 is offered per application.
Registrars: Karvy Computer share Pvt. Ltd.
Debenture Trustee: IDBI Trusteeship Services Ltd.
Depositories: NSDL and CDSL
Listing: Bonds to be listed on BSE and NSE
Lead Brokers to IDFC Infra Bond: Bajaj Capital Investor Services, Enam Securities, Edelweiss Broking, HDFC Securities, IDBI Capital Market Services, JM Financial Services, Karvy Stock Broking, Kotak Securities, NJ India Invest, Integrated Enterprises (India), RR Equity Brokers, Sharekhan, SMC Global Securities, SBI Cap Securities
