Zero coupon bond notification: new rules require pre issue approval, investment timetables and compliance for tax recognition. New rules require issuers to apply in Form 5B for notification of zero coupon bonds, supply corporate or trust documentation, and secure Central Government notification only after meeting conditions: prescribed long term bond life, dual registered investment grade ratings, listing arrangements, and issuer undertakings to invest proceeds according to specified timetables. The Government may reject or withdraw notification for non compliance, and issuers must file annual accountant certificates confirming investments; notified bonds must list particulars such as name, life, issue schedule, redemption amount, discount and number of bonds.
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Zero coupon bond notification: new rules require pre issue approval, investment timetables and compliance for tax recognition.
New rules require issuers to apply in Form 5B for notification of zero coupon bonds, supply corporate or trust documentation, and secure Central Government notification only after meeting conditions: prescribed long term bond life, dual registered investment grade ratings, listing arrangements, and issuer undertakings to invest proceeds according to specified timetables. The Government may reject or withdraw notification for non compliance, and issuers must file annual accountant certificates confirming investments; notified bonds must list particulars such as name, life, issue schedule, redemption amount, discount and number of bonds.
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