Download REC Bond Application Form – RURAL ELECTRIFICATION CORPORATION

Download REC Tax Free Bonds ApplicationPublic Issue of Tax Free Bonds by Rural Electrification Corporation Limited

Issue Opening Date: February 25, 2013

Issue Closing Date: March 15, 2013

Credit Ratings: “CRISIL AAA/Stable” by CRISIL “CARE AAA” by CARE “IND AAA” by IRRPL and “[ICRA] AAA” by ICRA.

Issue of Bonds: Tax Free Secured Redeemable Non Convertible Bonds of Face Value of Rs. 1,000 each in the nature of debentures having tax benefits under Section 10 (15)(iv)(h) of the Income Tax Act, 1961, as amended (“Bonds”) for an amount aggregating upto the Shelf Limit* (Rs. 4,500 crores) by way of issuance of Bonds in one or more tranches in the Fiscal 2013 (each a “Tranche Issue”, and together all Tranche Issues upto the Shelf Limit, “Issue”).

Issue Price: Rs. 1,000 per Bond.

Minimum Application Size: 5 Bonds (Rs. 5,000) and in multiples of 1 Bond (Rs. 1,000) thereof

Download REC Bond Application Form >> HERE

 

Got questions, email us: info@nriinvestindia.com

Issue Size: Public Issue by Rural Electrification Corporation Limited (“REC” or “Issuer” or the “Company”) of Tax Free Secured Redeemable Non Convertible Bonds of Face Value of Rs. 1,000 each in the nature of debentures having tax benefits under Section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended (“Bonds”) for an amount aggregating upto the Shelf Limit* (Rs. 4,500 crores) by way of issuance of Bonds in one or more tranches in the Fiscal 2013 (each a “Tranche Issue”, and together all Tranche Issues upto the Shelf Limit, “Issue”).This Tranche Issue by the Issuer is of Bonds aggregating to Rs 100 crores with an option to retain oversubscription for an amount upto the Residual Shelf Limit Rs.2,482.65 crores (“Tranche-2 Issue”).

Listing: BSE and NSE. NSE shall be the Designated Stock Exchange for the Issue.

Interest on Application Money receiving allotment: @ 6.88% p.a. and 7.04% p.a. on Tranche-2 Series 1 and Tranche-2 Series 2 respectively for allottees under Category I, Category II and Category III Portion, and @ 7.38% p.a and 7.54% p.a. on Tranche-2 Series 1 and Tranche-2 Series 2 respectively for allottees under Category IV Portion

Mode of Allotment: In dematerialised form as well as in physical form, at the option of applicants

Depositories: NSDL and CDSL

SALIENT FEATURES OF THE PROPOSED TAX FREE BONDS

  • The CBDT, MOF, GoI, by virtue of powers conferred upon it under item (h) of sub clause (iv) of clause (15) of Section 10 of the Income Tax Act, 1961, has issued notification authorising REC to issue Bonds for an amount aggregating to Rs. 5,000 crores in one or more Tranches during the financial year 2012-13. Out of the allocated limit of Rs. 5,000 crores, REC has raised Tax Free Bonds aggregating to Rs. 500 crores on private placement basis on November 21, 2012. Consequently, the Shelf Limit was reduced to Rs 4,500 crores. Further the Company has raised Rs 2,017.3471 crores through public issue in terms of Prospectus Tranche – 1.
  • Tax benefits u/s 10 (15) (iv) (h) of the Income Tax Act, 1961 – interest on these Bonds shall not form part of total income.
  • Credit Ratings of “CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE , “[ICRA] AAA” by ICRA & “IND AAA” by IRRPL indicating Highest Degree of Safety in terms of timely servicing of financial obligations.
  • Bonds to be allotted in dematerialized form as well as in physical form, at the option of the applicants but tradable in dematerialized form.
  • Allotment would be on first come first serve basis based on the date of upload of the application on the electronic system of the stock exchanges.
  • Bonds are proposed to be listed on the BSE and NSE.

HIGHLIGHTS OF TAX BENEFITS

  • Interest from these Bonds shall not be included in total income of any person as per provisions of Section 10 (15) (iv) (h) of Income Tax Act, 1961.
  • Since the interest income on these Bonds is exempt from tax, no Tax Deduction at Source is required.
  • Wealth Tax is not levied on investment in bonds under section 2(ea) of the Wealth-tax Act, 1957

Need REC Application Form >> CLICK HERE

Got questions, email us: info@nriinvestindia.com

Source: Shelf Prospectus dated November 26, 2012 & Prospectus Tranche-2 dated February 13, 2013

Disclaimer: “Invest only after referring to final prospectus”.

- Kindly note that online/electronic versions of the application form you are seeking to access are being made available on this website by us on a good faith basis. By accessing this application form you confirm that your downloading, viewing or using the same will not constitute in the jurisdiction applicable to you a directed solicitation and/or a selling efforts. If you are not permitted to view materials on this website or are in any doubt as to whether you are permitted to view these materials, please exit this webpage.
- Making documents available online in an electronic format does not constitute an offer to sell or the solicitation of an offer to buy securities in Rural Electrification Corporation Limited (REC) (“Issuer”). Further, it does not constitute a recommendation by NriInvestIndia.com (ni2 Financial Consultancy Pvt Ltd) or any other party to sell or buy securities in Rural Electrification Corporation Limited (REC).
- Use of our website confirms your acceptance to the terms and conditions related to the Issue as provided in the Draft Shelf Prospectus of Rural Electrification Corporation Limited (REC) bonds and Prospectus Tranche (referred as the “Prospectus”). You also confirm that you are eligible to make an application for the Issue and the decision to invest in the Issue is based on your own discretion and your examination of the Issuer and the Issue and based on disclosures made in the Prospectus.

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