Power finance corporation (PFC) Long Term Infrastructure Bonds: Introduction, Issue Details, Maturity, Documents Required, Tax exemption under Section 80CCF

Power finance corporation (PFC) Long Term Infrastructure Bonds: Introduction, Issue Details, Maturity, Documents Required, Tax exemption under Section 80CCF



Introduction

Power finance corporation (PFC), is a Govt Of India undertaking institute engaged in project finance of power and energy sector.PFC is actively engaged in finance of power plants,Hydroelectric and wind energy plants and various projects envolving generation,distribution and transmission as well as for renovation & modernization of existing power plants,along with consulting assignments of power sector.
Long term infrastructure bonds by Power Finance Corporation, A Government of India Navaratna Company, registered with RBI as NBFC is open from 29.9.2011 and will close on 4.11.2011.

Issue Details

• Issue size is Rs.200 crores with an option to retain oversubscription upto Rs.6,900/- crores.
• Tenure of the bonds is 10 and 15 years with lock-in of 5 and 7 years.
• Minimum investment of Rs.5000/- and in multipels of Rs.5000/-, No maximum limit.
• CRISIL rating of "AAA/Stable and "AAA with stable outlook from ICRA.
• Tax benefit under Sec. 80CCF for amount upto Rs.20,000/- only.
• Bonds available in Physical as well as Demat form.  No TDS on interest if applied in Demat form.

Maturity:
Bonds with maturity of 10yrs will be issue in series 1 and 2, with buyback option available after 5 yrs.while for series (3)& (4) maturity period is of 15 yrs and buyback is possible after completion of 7 yrs.
Bonds can be applied in demat as well physical mode.The bonds will be listed at BSE and can be traded only after completion of 5 yrs.

Documents required:

• Demat mode: Cheque and self attested copy of pan card.Bank account ,nominee details will be picked from registry of  demat account.Interest,refund or maturity amount will be credited in bank account linked with your demat account.
• Physical mode: Cheque,Self attested copy of pan card , address proof and cancelled copy of cheque.

For further details:
 TO CHECK MORE DETAILS FROM THE OFFICIAL WEBSITE OF PFC