9911796707
TMI BlogAuthorised entities under Section 10(15)(iv)(h) of the Income Tax Act, 1961 - To issue tax-free, secured, redeemable, non-convertible bonds during the f.y. 2015-16.X X X X Extracts X X X X X X X X Extracts X X X X ..... n below, to issue, tax- free, secured, redeemable, non-convertible bonds during the financial year 2015-16, aggregating to amounts mentioned in column (3) of the said table, subject to the conditions, namely :- CONDITIONS 1. Eligibility - The following shall be eligible to subscribe to the bonds:- (i) Retail Individual Investors (RIIs); (ii) Qualified Institutional Buyers (QIBs); (iii) corporates (including statutory corporations), trusts, partnership firms, Limited Liability Partnerships, co-operative banks, regional rural banks and other legal entities, subject to compliance with their respective Acts; and (iv) High Networth Individuals (HNIs). 2. Tenure of bonds - The tenure of the bonds shall be for ten or fifteen or twenty y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, the interest rates shall be reduced by fifteen basis points; (vii) the higher rate of interest, applicable to RIIs, shall not be available in case the bonds are transferred by RIIs to non retail investors. 5. Issue expense and brokerage - (i) In the case of private placement, the total issue expense shall not exceed 0.25 per cent of the issue size and in case of public issue it shall not exceed0.65 per cent of the issue size; (ii) the issue expense would include all expenses relating to the issue like brokerage, advertisement, printing, registration etc. 4[6. Public issue.- (i) Seventy percent. of the aggregated amount of bonds issued by each entity in the TABLE shall be raised through public issue; (ii) Forty per cent. of pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, Infrastructure Division, Department of Economic Affairs, Ministry of Finance, within three months of closure of the issue, duly supported by a resolution of the respective entity's Board of Directors. 9. Selection of merchant bankers - (i) Merchant bankers shall be selected through competitive bidding process with transparent pre-qualification criteria and the final selection shall be based on financial bids; (ii) the benefit under section 10 of the Income-tax Act, 1961 (43 of 1961) shall be admissible only if the holder of such bonds registers his/ her or its name and the holding with the entity. (iii) the issue of bonds shall be made in compliance with the public issue requirements specified in the Companies Act, 2013 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification number FEMA 20/2000-RB dated the 3rd May, 2000, issued under clause (b) of subsection (3) of sections 6 and 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), as amended from time to time. (iv) The credit rating referred to in paragraph 4 of this notification shall mean the credit rating, as assigned by a credit rating agency which is approved by the Securities and Exchange Board of India as well as the Reserve Bank of India and where an entity has been rated differently by more than one rating agency, the lower of the two ratings shall be considered. [F.No.178/ 27/2015-ITA-I] (DEEPSHKHA SHARMA) Director to the Government of India ------------------------------- Notes:- 1. Inserted vide Not. 6/2016 - Dated 18- ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
