Tax-free bonds: capped coupon rates and structured issuance rules govern investor eligibility and placement procedures. Specified public sector and infrastructure entities are authorised to issue tax-free, secured, redeemable, non-convertible bonds during 2013-14 subject to aggregate limits. Bonds may have ten, fifteen or twenty year tenures; subscribers must furnish PAN. Coupon rates are capped using a FIMMDA-based reference G-sec yield with differential spreads for Retail Individual Investors and rating-based adjustments for AA+ and AA/AA- issuers; semi-annual payment reduces rates. Public issue and private placement procedures, issue expense caps, post-issue financing plan submission to the Ministry of Finance, competitive selection of merchant bankers and compliance with Companies Act and SEBI debt regulations are mandated.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax-free bonds: capped coupon rates and structured issuance rules govern investor eligibility and placement procedures.
Specified public sector and infrastructure entities are authorised to issue tax-free, secured, redeemable, non-convertible bonds during 2013-14 subject to aggregate limits. Bonds may have ten, fifteen or twenty year tenures; subscribers must furnish PAN. Coupon rates are capped using a FIMMDA-based reference G-sec yield with differential spreads for Retail Individual Investors and rating-based adjustments for AA+ and AA/AA- issuers; semi-annual payment reduces rates. Public issue and private placement procedures, issue expense caps, post-issue financing plan submission to the Ministry of Finance, competitive selection of merchant bankers and compliance with Companies Act and SEBI debt regulations are mandated.
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