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Buying G-securities at an auction? Here are 4 things that you should know
Buying G-securities at an auction? Here are 4 things that you should know
The government, in order to finance its expenses, regularly issues bonds through auctions announced by the RBI. These are called G-secs and, typically, these are bonds that pay interest and have maturities ranging from two to 30 years.
About 5 per cent of the auction amount is reserved for non-competitive bidders, including individuals, who can apply for and buy these bonds. G-secs come with a sovereign guarantee and the payable interest, which is taxable, is determined at the auction.
Eligibility:
Individuals, NRIs, PIOs, HUFs, societies, associations, trusts and other such bodies can apply for G-secs as non-competitive bidders.
Account:
To buy G-secs, an investor must open a constituent security general ledger (CSGL) account with his bank or have a demat account. G-secs have to be bought through banks that submit the investor's bid to the RBI. The payment is made through the bank account ...
Frequently Asked Questions on Public Provident Fund (PPF)
Frequently Asked Questions : 1. What is the PPF Scheme? Public Provident Fund (PPF) scheme is a long term investment scheme backed by the Government of India, framed under the Public Provident Fund Act, 1968. It offers safety with attractive interest rate and returns that are fully exempted from Tax. 2. Who can open account under PPF scheme? a. Individual or individual as guardian of a minor can open the account. (account cannot be opened in Joint names). b. Only one account can be opened by an individual in his/her own name. 3. Who cannot open PPF account? a. HUF are not eligible. b. Non Resident Indians are not eligible. 4. What is the Limit of Subscription to a PPF account? Minimum subscription of Rs.500/- and maximum of Rs.1, 50,000/- can be made in lump sum or in 12 instalments per financial year. (The subscription limits stands enhanced to Rs. 1,50, 000/ per year w.e.f. 23.08.2014) 5. When does a PPF account mature and can PPF account ...



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