Product Updates

State-owned companies like IRFC, Hudco and NHAI to offer tax-free bonds of Rs 18,000 crore Yield-hungry investors will have reason to celebrate even after Diwali. Three state-owned companies will offer tax-free bonds of as much as Rs 18,000 crore collectively in the next two to four weeks, giving crestfallen retail investors an opportunity to earn attractive returns over a long period. Indian Railways Finance Corporation (IRFC), Housing & Urban Development Corporation (Hudco) and National Highways Authority of India (NHAI) will sell tax-free bonds that are at least five times larger than recent issuances, three market sources told ET. Individuals who could not subscribe to such bonds offered by NTPC, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) in the past two months are now expected to rush for the fresh series. NTPC, PFC and REC sold bonds worth Rs 700 crore each, which were oversubscribed multiple times. IRFC will sell tax-free bonds worth Rs 4,53...

Sovereign Gold Bonds Scheme Investors will have the option to buy sovereign gold bonds instead of physical gold this Dhanteras. Applications for gold bonds will be accepted from November 5 to November 20, 2015, while these bonds will be issued on November 26, 2015, the Reserve Bank of India said. Here are 10 things to know about gold bonds 1) Sovereign gold bonds will be issued by the Reserve Bank of India. They will denominated in particular amount of gold and linked to the price of the yellow metal. If the price of gold increases, the value of the bond goes up, benefiting investors. 2) Investors can buy a minimum of 2 units or 2 grams and a maximum at 500 grams per fiscal year. The Reserve Bank has fixed the public issue price at Rs 2,684 per gram for the sovereign gold bonds. This means the minimum investment comes to around Rs 5,400. 3) Investors will get a fixed rate of interest of 2.75 per cent per annum (payable every 6 months) on the initial value of investment. 4) The gold bo...

Have You Checked Your KYC Status? Over the past month, several mutual fund investors would have received a mail from their fund house to update their Know-Your-Customer (KYC) details. In September, the Association of Mutual Funds in India (AMFI) directed AMCs to adhere to the following requirements for individual investors from 1 November 2015: 1. Make it mandatory for all new investors to provide additional KYC details such as income details, occupation, net worth, political association, etc. 2. Not accept purchase and switch transactions for investors whose status is "KYC-On Hold", unless the investor submits the missing information or updates KYC. 3. Ensure that new investors submit Foreign Account Tax Compliance Act (FATCA) or Common Reporting Standard (CRS) declaration while opening an account. By 31 December 2015, fund houses are advised to make it mandatory for existing investors to provide the missing details above and complete IPV (In-Person Verification). Failing th...