After NTPC, PFC – Power Finance Corporation – Govt Of India undertaking financial institution which promotes efficient investments in Indian power and allied sectors will open tax free bonds for subscription.
PFC will offer Tax Free Bonds for duration of 10yrs, 15yrs and 20yrs. PFC will raise Rs.700 crore through the issue of Tax Free bonds 2015.
Interest received from tax free bonds will be free from income tax.Investor can report this income but will not added in overall income of investor.
Important Dates:
- Issue Open Date:Oct 05, 2015.
- Issue Close Date: Oct 09, 2015^.
^issue can be foreclosed if oversubscribed earlier.
Credit Rating : AAA From ICRA, CRISIL and CARE.indicates highest safety of the issue.
Mode Of Issuance: Unlike to NTPC issue (where demat mode was compulsory), investor of PFC Tax Free Bond issue can subscribe with either Physical or Demat mode.
Interest Rates:
Interest rates for individual investors applying for up to Rs. 10 Lakh.
| Tenure | Interest Rates – Interest payable annually |
| 10 Yrs | 7.36% |
| 15 Yrs | 7.52% |
| 20 Yrs | 7.60% |
Tax Free Bond is good option from fixed income category if any one is looking for tax free, long term, secured income. NTPC tax free bonds were oversubscribed within few hours.As we are in low rates regime, these bonds may have good demand in secondary market.so if you are looking to invest then apply on the first day itself.Its suggested to invest for long term perspective rather for speculative short term period.
