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Tax-Free Bonds 2012 Notification Summary

This notification outlines guidelines for issuers, issue size, limits, and coupon terms for tax-free bond offerings in 2012. Minimum public issue requirement, retail investor allocation, book-building approach, and bond size limitations. Reference G-Sec rates for coupon calculations. Coupon terms and pre-tax yields are governed by set limits.

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Tax-Free Bonds 2012 Notification Summary

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  1. Tax Free Bonds 2012 Notification summary

  2. Issuers and issue size • Minimum 75% of the aggregate amount of allotted bonds are to be issued through public issue. • 40% of the issue shall be earmarked for retail investors. • When issuing through private placement • the issuer shall adopt a book building approach and seek bids on coupon. • No limit of number of arrangers • Maximum size of 500 Cr. by each tranche

  3. Coupon and Issue expenses • Reference G Sec (RRate): Average of base yield of Government Security for equivalent maturity reported by FIMMDA prevailing for two weeks ending on Friday immediately preceding the filing of final prospectus. • Ceiling on Coupon

  4. Terms of the issue Reference Rate Limit on Coupon Pre tax yields (for 10 Years at cap coupon rates)

  5. Thank You

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