How to apply
- You can apply online to invest in an infrastructure bond, if you have a demat account.
- You require a demat account and a PAN to trade in infrastructure bonds.
- You can apply for these bonds in the physical form.
- These bonds have a maturity period of 10 years and a lock in period of 5 years.
Are infrastructure bonds tax free?
Tax-saving infrastructure bonds are a good option in the fixed income category. Investment up to Rs 20,000 in these bonds is eligible for income tax deduction under Section 80 CCF of the Income-Tax Act. This is over and above the Rs 1,00,000 deduction available under Section 80C.
Who can issue infrastructure bonds?
All Indian citizens who are older than 18 years of age, and Hindu Undivided Families may invest in infrastructure bonds. Ideally, each individual can only submit one application as multiple applications could be aggregated depending upon the PAN (permanent account number).
What do you need to know about infrastructure bonds?
Governments and companies need to borrow money for projects or expansion. Infrastructure bonds are borrowings to be invested in government funded infrastructure projects within a country. They are issued by governments or government authorised Infrastructure companies or Non- Banking Financial Companies. How do Infrastructure bonds work?
Why are bonds good instrument for the government?
Bonds are good instruments to borrow capital and deposits from the public. The government of the country requires a huge sums to be invested in infrastructure activities for expansion and growth. When bonds are issued for investments in such infrastructure projects in a country, they are termed as Infrastructure bonds.
When was the first infrastructure bond issued in South Africa?
April 2013 saw the first listing and investment-grade rated infrastructure project bond, held entirely by institutional investors. The bond was listed on the Johannesburg Stock Exchange in June 2013.
What are project bonds and what do they do?
Project bonds offer an opportunity for institutional investors to participate in infrastructure projects through listed, tradable securities that can offer superior risk-adjusted returns.
