The Bonds are offered with two different Series, i.e. with tenor of 10 years and 15 years. The coupon rate for Individual and HUF investors applying for an amount up to Rs. 10 lakhs shall be 8.52% and 8.75% for the Bonds with tenor of 10 years and 15 years, respectively. For all other investors, the coupon rate shall be 8.27% and 8.50%, respectively. As Bonds carry tax benefits under section 10(15) (iv) (h) of the Income Tax Act, 1961, as amended, the income earned by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income.
The minimum application size is 5 Bonds (Rs. 5,000) individually or collectively across both Series of Bonds and in multiples of 1 Bond (Rs. 1,000) thereafter.
The Allotment shall be made on first come first serve basis determined on the basis of date of upload of Applications on the electronic Application platform of the stock exchanges. The Allotment of the Bonds shall be in dematerialized form as well as physical form. However, trading in Bonds shall be compulsorily in dematerialized form.