EQUITY | F&O | DP | COMMODITIES | MUTUAL FUNDS | INSURANCE | DEBT | IPOs | PMS | WMS | LAS
RURAL ELECTRIFICATION CORPORATION LTD – TAX FREE BOND Date: 3rd March, 2012
ISSUE OPENING DATE: 6th March, 2012 ISSUE CLOSING DATE: 12th March, 2012 ISSUER Issue Structure Issue Size
RURAL ELECRTIFICATION CORPORATION (REC) -TAX FREE BOND Tax Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures Aggregating to `1,500 Crores with an option to retain over subscription upto a total amount of `3000 Crores
Allotment
Tenure
On First Cum First Serve Basis
10 Years
15 Years
Category I ,II (QIB,HNI & Corp) (Coupon Rate)
7.93%
8.12%
Category III (Retail )( Coupon rate)
8.13%
8.32%
Interest Payment Date
Credit Rating
Face Value
Minimum Application
Issuance
Payable Annually Only “CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE, “ICRA AAA” by ICRA `1000
`5000 & in multiples of 1 bond thereafter
Only in dematerialized mode
Listing
Proposed to be listed on BSE & NSE
Trading
Compulsorily in dematerialized Mode
Interest on Refund
5% p.a.
GEPL Capital Pvt. Ltd. (An ISO 9001:2000 Certified Company) D-21, Dhanraj Mahal, CSM Marg, Colaba, Mumbai - 400 001 Tel: +91 22 6618 2400 Fax: +91 22 2204 3452 Email:
[email protected] Web: www.geplcapital.com
EQUITY | F&O | DP | COMMODITIES | MUTUAL FUNDS | INSURANCE | DEBT | IPOs | PMS | WMS | LAS
RURAL ELECTRIFICATION CORPORATION LTD – TAX FREE BOND Date: 3rd March, 2012
WHO CAN APPLY
Public Financial Institution as defined in section 4A of the Companies Act, 1956 Scheduled Commercial Bank Multilateral and Bilateral Development Financial Institution State Industrial Development Corporation Insurance Company registered with the Insurance Regulatory and Development Authority Provident Fund with minimum corpus of twenty five crore rupees Pension Fund with minimum corpus of twenty five crore rupees National Investment Fund set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India published in the Gazette of India
Category I
Insurance Funds set up and managed by army, navy or air force of the Union of India Insurance Funds set up and managed by the Department of Posts, India Regional Rural Banks and Co-operative Banks, eligible to invest in the Issue Companies; bodies corporate and societies registered under the applicable laws in India and authorized to invest in the Bonds; Public/private charitable/religious trusts which are authorized to invest in the Bonds; Scientific and/or industrial research organizations, which are authorized to invest in the Bonds; Mutual Funds; Partnership firms in the name of the partners; Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009) Resident Indian Individual
The following investors applying for an amount aggregating to above ` 5 lakhs across all Series in each tranche
Category II
•
Resident Indian individuals;
• Hindu Undivided Families through the Karta; and Non Resident Indians on repatriation as well as non-repatriation basis.
The following investors applying for an amount aggregating to up to and including
` 5 lakhs across all
Series in each tranche
Category III
•
Resident Indian individuals;
Hindu Undivided Families through the Karta; and Non Resident Indians on repatriation as well as nonrepatriation basis.
GEPL Capital Pvt. Ltd. (An ISO 9001:2000 Certified Company) D-21, Dhanraj Mahal, CSM Marg, Colaba, Mumbai - 400 001 Tel: +91 22 6618 2400 Fax: +91 22 2204 3452 Email:
[email protected] Web: www.geplcapital.com
EQUITY | F&O | DP | COMMODITIES | MUTUAL FUNDS | INSURANCE | DEBT | IPOs | PMS | WMS | LAS
RURAL ELECTRIFICATION CORPORATION LTD – TAX FREE BOND Date: 3rd March, 2012
Category Wise Break-up of the issue Category I
Category II
Category III
Upto 50% of Overall Issue Size
Upto 25% of Overall Issue Size
Upto 25% of Overall Issue Size
QIB & Corporate
Individuals & HUF applying for more than `5 Lakh
Individuals & HUF applying upto `5 Lakh
*On first come first serve basis to be determined on the basis of date of receipt of applications duly acknowledged by the Bankers to the Issue
Applications cannot be made by: a) b) c) d) e)
Minors without a guardian name; Foreign nationals; Persons resident outside India including NRIs; Overseas Corporate Bodies FIIs
HIGHLIGHTS OF TAX BENEFITS • • • •
In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of Section 10 of the Income Tax Act, 1961 (43 of 1961) the Central Government authorizes REC to issue during the FY 2011-12, Tax Free, Secured, Redeemable, Non-convertible Bonds. The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961. There will be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957
GEPL Capital Pvt. Ltd. (An ISO 9001:2000 Certified Company) D-21, Dhanraj Mahal, CSM Marg, Colaba, Mumbai - 400 001 Tel: +91 22 6618 2400 Fax: +91 22 2204 3452 Email:
[email protected] Web: www.geplcapital.com
EQUITY | F&O | DP | COMMODITIES | MUTUAL FUNDS | INSURANCE | DEBT | IPOs | PMS | WMS | LAS
RURAL ELECTRIFICATION CORPORATION LTD – TAX FREE BOND Date: 3rd March, 2012
Documents required in REC Bonds: Applications by Public Financial Institutions, Statutory Corporations, which are authorized to invest in the Bonds The application must be accompanied by certified true copies of (i)
Self-attested copy of the PAN card;
(ii) Any Act/Rules under which they are incorporated; (iii) Board Resolution authorising investments; (iv) (iv)Specimen signature of authorized person
Application by Commercial Banks, Co-operative Banks and Regional Rural Banks Commercial Banks, Co-operative banks and Regional Rural Banks can apply in this public issue based upon their own investment limits and approvals. The application must be accompanied by certified true copies of (i)
Self-attested copy of the PAN card;
(ii)
Certificate of incorporatation
(iii) Board Resolution authorizing investments; (iv) Letter of Authorization.
Applications by Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorized to invest in the Bonds and National Investment Fund The application must be accompanied by certified true copies of: (i) Self-attested copy of the PAN card; (ii)
Certificate of incorporatation
(iii) Board Resolution authorizing investments; (iv) Letter of Authorization.
Application by Insurance Companies The applications must be accompanied by certified copies of (i) Self-attested copy of the PAN card; (ii)
Any Act/Rules under which they are incorporated;
(iii) Certificate of registration issued by the Insurance Regulatory and Development Authority; (iv) Memorandum and Articles of Association (v)
Power of Attorney
(vi) Resolution authorising investment and containing operating instructions (vii) Specimen signatures of authorised signatories.
GEPL Capital Pvt. Ltd. (An ISO 9001:2000 Certified Company) D-21, Dhanraj Mahal, CSM Marg, Colaba, Mumbai - 400 001 Tel: +91 22 6618 2400 Fax: +91 22 2204 3452 Email:
[email protected] Web: www.geplcapital.com
EQUITY | F&O | DP | COMMODITIES | MUTUAL FUNDS | INSURANCE | DEBT | IPOs | PMS | WMS | LAS
RURAL ELECTRIFICATION CORPORATION LTD – TAX FREE BOND Date: 3rd March, 2012
Applications by Mutual Funds The applications must be also accompanied by certified true copies of (i)
Self-attested copy of the PAN card.
(ii)
SEBI Registration Certificate and trust deed
(iii) Resolution authorising investment and containing operating instructions and (iv) Specimen signatures of authorised signatories.
Companies, bodies corporate and societies registered under the applicable laws in India The application must be accompanied by certified true copies of: (i) Self-attested copy of the PAN card;. (ii)
Certificate of incorporation
(iii) Board Resolution authorising investments (iv) Specimen signature of authorized person
Applications by Trusts The application must be accompanied by certified true copies of (i) Self-attested copy of the PAN card;. (ii)
Certified copy of the registered instrument for creation of such trust,
(iii)
Power of Attorney, if any, in favour of one or more trustees thereof,
(iv)
such other documents evidencing registration thereof under applicable statutory requirements
(v)
Specimen signature of authorized person.
Scientific and/or industrial research organizations, which are authorized to invest in the Bonds The application must be accompanied by certified true copies of: (i) Self-attested copy of the PAN card;. (ii)
Any Act/Rules under which they are incorporated;
(iii) Board Resolution authorising investments; (iv)
Specimen signature of authorized person
GEPL Capital Pvt. Ltd. (An ISO 9001:2000 Certified Company) D-21, Dhanraj Mahal, CSM Marg, Colaba, Mumbai - 400 001 Tel: +91 22 6618 2400 Fax: +91 22 2204 3452 Email:
[email protected] Web: www.geplcapital.com
EQUITY | F&O | DP | COMMODITIES | MUTUAL FUNDS | INSURANCE | DEBT | IPOs | PMS | WMS | LAS
RURAL ELECTRIFICATION CORPORATION LTD – TAX FREE BOND Date: 3rd March, 2012 Partnership firms in the name of the partners and Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009) The application must be accompanied by certified true copies of: (i) Self-attested copy of the PAN card;. (ii)
Partnership Deed;
(iii) Any documents evidencing registration thereof under applicable statutory/regulatory requirements; (iv)
Resolution authorizing investment and containing operating instructions (Resolution)
(v)
Specimen signature of authorized person.
Applications under Power of Attorney In case of Investments made pursuant to a power of attorney by Category I investors, (i) Self-attested copy of the PAN card;. (ii)
A certified copy of the power of attorney or the relevant resolution or authority,
(iii) A certified copy of the memorandum of association and articles of association, In case of Investments made pursuant to a power of attorney by Category II and Category III investors, (i) Self-attested copy of the PAN card;. (ii)
A certified copy of the power of attorney must be lodged along with the Application Form.
(iii) Brokers having online demat account portals may also provide a facility of submitting the application forms virtually online to their account holders. Under this facility, a broker receives an online instruction through its portal from the applicant for making an application on his/her behalf. Based on such instruction, and a Power of Attorney granted by the applicant to authorize the Broker, the Broker submits an application form to the Bankers to the Issue.
Application by Minors with a Guardian (i)
Self Attested Copy o Pan card ( Minor )
(ii) Pan Card copy of Guardian
DEEPAK PANJWANI
Head (Debt)
9323555164/ 022-66182352
[email protected]
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GEPL Capital Pvt. Ltd. (An ISO 9001:2000 Certified Company) D-21, Dhanraj Mahal, CSM Marg, Colaba, Mumbai - 400 001 Tel: +91 22 6618 2400 Fax: +91 22 2204 3452 Email:
[email protected] Web: www.geplcapital.com
