SBI bond issue 2011 and TDS confusion

SBI has come up with a bond issue again. The previous edition was a super duper hit and now the bonds come with more attractive interest rates for 10 year and 15 year periods.

These bonds would be available for trading and would be available in demat form only.

However there is some serious confusion about TDS for the bond issue(  tax deduction at source).

The prospectus says there would be TDS on interest beyond Rs 2500 pa  in one place and talks of TDS above interest of Rs 10000 pa in another ( prospectus on NSE site).

The application form says there will be no TDS as the bonds would be listed and for bonds held in demat form. The confusing part is the bond can be applied only if one has a demat account. :-)

Note :- TDS was not applicable in the previous edition.

SBI and regulators reviewing the prospectus should be more careful when coming up with the prospectus.

IDFC infrastructure bonds - Not seen in your demat account?

I had applied for IDFC infrastructure bond in October 2010. My bank account got debited long back. I was waiting to see the bond credited in my demat account.

Finally got the information letter on allotment last  week but still the demat account wasn't reflecting IDFC  bonds credit.

The bonds are not seen in the 'holdings' section in my demat account ( India infoline). I figured it out in the transactions details.

SBI Tier 2 Bonds 2010 - Oversubscribed as expected!!

After the over subscription to the bonds as expected , now the question that may be in minds of those who applied for the issue is - What will be the basis of allotment??

SBI Bonds issue opens today

SBI Series 1 and Series 2 Lower Tier II Bonds - Good investmentoption with a high interest rate and it's going to be listed too.

More details @

http://www.equitybulls.com/admin/news2006/news_det.asp?id=81678

10 year bond yielding 10% p.a

ICICI Bank has come up with a regular income bond issue. The 10 year option yields 10% p.a interest. There are annual and monthly payout options for interest depending on the option you choose. This bond is also available for 5 year period.( subscription from September 29, 2007 and closes on October 12, 2007.)

In a scenario, where interest rates are seemingly cooling down, this may be a good option . 10% p.a. interest for a 10 year period may be a great boon for those who keenly looking at investments like FD & other low risk investments.

Those who have the zeal to take a bit of risk , can safely avoid this. 10 Year is a good amount of time in which one may get a slightly better than this through equity/balanced funds.

For more details on the issue visit this link.

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