Rule 2F - Guidelines for setting up an Infrastructure Debt Fund for the purpose of exemption under clause (47) of section 10.

Infrastructure Debt Fund eligibility and compliance: NBFC setup, investment limits, bond issuance rules and tax exemption conditions.

IDF exemption conditions require the fund to be set up as a Non Banking Financial Company under RBI regulations; invest only in post commencement infrastructure projects with at least one year of commercial operation or in toll operate transfer projects; issue rupee or foreign currency bonds, zero coupon bonds or raise ECBs subject to RBI and foreign exchange rules; observe minimum maturity and tenor requirements for non resident bond investors and ECBs; limit any single project or group exposure to twenty percent of corpus; avoid investments where specified shareholders or associated enterprises have a substantial interest; and file returns under section 139(4C).