Features of the bond :
Issuer | Government of India |
Cut Off Price / Yield | In case of a re-issuance, Weighted Average Price of allotment to competitive bidders. In case of primary issuance, Weighted Average Yield of allotment to competitive bidders. |
Cost of Security | Cut Off Price + Accrued Interest + Commission/Brokerage (0.06 per Rs 100) |
Interest Payment | Half Yearly, Interest to the holders will be paid from date of allotment/issue up to next interest payment date and thereafter half yearly till the maturity date. |
Risks Attached | Interest Rate Risk |
Minimum Investment (Face Value) | Rs 10,000/- |
Eligibility for Investment:
The Bonds may be held by –
(i) An individual, not being a Non-Resident Indian
(ii) A Hindu Undivided Family
Mode of application
Taxation
Interest on the Bond will be taxable under Income-Tax Act, 1961.