#NABARDTaxFreeBondsMarch2016:Details & Interest Rates

NABARD : National Bank For Agricultire & Rural Development is engaged in promotion and development of agriculture small industries & other allied economic activities in rural area.

Key stakeholders of NABARD : Govt of India have 99.60% & RBI remaining 0.40%.

NABARD will raise Rs.3500 crore through public issue of Tax Free Bonds.

Important Dates:

1. Issue open date:March 09,2016.
2. Issue close date:March 14, 2016.
3. Interest payment date:Each year on date of allotment from year 2017.

Interest Rates:

1. Credit rating : AAA by IND & CRISIL indicates highest safety.
2. Security : Issue is 100% secured for principle and interest thereon through charge created on specific debt & immovable asset.Axis Trustee Services Limited is debenture trustee & Link In Time is registrar of this issue
3. 60% of issue size is reserved for category IV investors i.e Resident  individual investors & HUFs applying for Rs.1o Lakh or less amount aggregating both series.
4. NRIs are not eligible to apply.
5. Investors can subscribe bonds through demat or physical mode.
6. Listing will be only at BSE.
7. Annual interest received in tax free but if annual tax free income from all sources is more than Rs.5000 then report it when you file income tax return.

Tax free bonds is good option for investors looking for Tax Free,Long term, Safe,periodic annuity like income.