A Bond / Debenture is a debt instrument where the issuer of the security agrees to repay the investor, the amount borrowed and interest, over a specified period of time.
Face Value (FV) is also known as the par value or principal value. Coupon (interest) is calculated on the face value of a bond. FV is the price of the bond, which is agreed by the issuer to pay to the investor on the maturity date.
Coupon / Interest is the cash flow that is offered by a particular security at fixed intervals / predefined dates. The coupon expressed as a percentage of the face value of the security gives the coupon rate.
Coupon Frequency refers to how regularly an issuer pays the coupon to holder. Bonds pay interest monthly, quarterly, semi-annually or annually.
Maturity date is a date in the future on which the investor's principal will be repaid. From that date, the security ceases to exist.
Call / Put option date is the date on which issuer or investor can exercise their rights to redeem the security.
Maturity / Redemption Value is the amount paid by issuer on the Maturity date other than coupon payment is called redemption value.
Day count convention refers to the norm for considering the days for which the interest is computed. Interest is normally computed on a 365 days a year basis on the principal outstanding on the NCDs. However, if period from the Deemed Date of Allotment / Anniversary date of Allotment till one day prior to the next anniversary / redemption date includes February 29, interest shall be computed on 366 days a-year basis, on the principal outstanding on the NCDs. It is highlighted that each Issuer may have a different norm for ascertaining the day count convention. Investors are advised to refer to the relevant Offer Document of the Debentures to know the specific details.
The difference in amount could be because of the day count convention. Please refer to the offer Document of the Issuer for more details. Alternatively you can note the interest details from our website using the below web address http://linkintime.co.in/bondquery
Payment of Interest is made to those NCD holders whose names appear in the register of Debenture Holders (or to first holder in case of joint-holders) as on a Record Date.
Interest is paid in physical mode in case incomplete Bank details are registered with your Depository participant if you hold securities in Demat mode or with the LIIPL if the securities are held in physical mode.
This could be due to any of the following reasons: MICR code not updated IFSC code not updated Incorrect account number updated. Bank name and branch missing
If you are holding in Demat mode you should get your Bank details including 9 digit MICR and the IFSC code updated with your Depository participant or if you hold securities in physical mode you can forward the request letter duly signed, along with Original Cancelled Cheque to Link Intime India Pvt Ltd (LIIPL), at the address on our website:- www.linkintime.co.in Alternatively, the Bank details registration format can also be downloaded from our website.
For securities held in physical form a letter duly signed by the holders stating the new address and the folio nos. / Name of company / ISIN alongwith address proof of any one document (copy of Passport / Driving Licence / Aadhar card / Voter ID ), be sent to LIIPL.You must ensure that the signatures of the holders is as per the specimen signatures registered with LIIPL. In case you have dematerialized holdings, please get your new address updated with your Depository Participant.
For Name correction in physical certificate, you should forward the duly signed letter along with original certificate and a copy of PAN card to LIIPL.
As per the current provision of Income Tax, Bonds / Debentures held in physical mode on which interest payable in the financial year exceeds Rs. 5000/- , are liable for deduction of tax at source. A declaration in Form 15G/H for claiming tax exemption from interest paid is required to be submitted to LIIPL. The form should be duly filled before submission along with Folio No. / ISIN /Company name. Incomplete forms are likely to be rejected.
Income tax is not deductible at source as per the existing provisions of section 193 of the I.T Act on interest on debentures in respect of the following for Resident Debenture Holder. “On any securities issued by a company in a dematerialized form and is listed on recognized stock exchange in India. (w.e.f. June 1,2008).”
No.
Forms15 G/H is valid for only one financial year and a fresh form 15G/H declaration has to be submitted every year. The duly completed forms should reach LIIPL before 1st of April every year to avoid deduction of tax at source.
To dematerialize your holding, you should first open an account with a Depository Participant (DP) of your choice. You may then hand over to your DP, the certificates along with the 'Dematerialisation Request Form' (DRF). Only the securities registered in your name can be submitted for dematerialization. Your DP will then send the DRF and the certificates to LIIPL and an electronic request will also be sent through the depository network reconfirming the same. LIIPL will verify the documents and if found in order, the dematerialization request will be confirmed to the Depository who will in turn inform your DP. In the books of the Company, your folio with LIIPL will be debited and the account of Depository will be credited in respect of such dematerialized securities. The Depository in their electronic records will credit the account of your DP who will then credit your account with the number of securities that have been dematerialized and the securities will thereafter be held in electronic form. The interest will be issued to the beneficial owners i.e. the accountholders who hold the securities in electronic form as on the Record date identified by the Issues. The interest amounts, when issued, will be credited to your bank directly as per the Bank details updated with your DP.
An investor can choose to reconvert his electronic holding into physical form at any time through his DP. However, some companies issue securities in Demat mode only. Hence physical certificates are not issued. Investors are requested to refer the offer document before submission of debenture certificates for Remat.
Following documents need to be submitted for transferring securities held in physical mode A proper and duly executed Transfer Deed; Transfer Deed will attract transfer stamp fee @ 50 paise for every Rs. 100/- of the consideration, i.e., the market value of the shares/bonds as on date of the execution of the Transfer Deed; Original Bond Certificates to enable the transfer; Photocopy of the PAN card; LIIPL (RTA) will, upon receipt of the duly executed transfer deed and together with the relevant share/bond certificates, process the same for transfer and thereafter send the duly transferred share/bond certificates to the transferees.
The procedure to be followed for deletion of name in the records is as below: Letter duly signed by the surviving joint holder(s). Original bond certificates for the entire holding to enable deletion. Annex a duly attested copy of the death certificate of the deceased bondholder, either by a Notary Public or by a Special Executive Officer. Furnish us with a letter from the Bank Manager of the bank where you have an account, identifying you and attesting your signature along with your account details. Annex a self-attested copy of the PAN card of surviving bondholders Provide us, copy of any one document each from (a) & (b) below, duly attested by Special Executive Officer or Notary Public or Your Bank Manager. Driving Licence or Passport or Election Card Ration Card or Latest Electricity Bill or Telephone Bill or Employer's TDS certificate in Form 16 Lodge your request after complying with the abovementioned requirements, after which we will take up the process further.
If the bonds were held in the sole name of the deceased bondholder the same can be transmitted in the names of maximum three joint legal heirs. Accordingly, in order to transmit the bonds, you are advised to submit following documents: Transmission application in the prescribed format duly completed and signed by the applicant/s. If there are more than three legal heirs, please furnish us N.O.C. as per the enclosed format and the same should be attested by the Notary Public Original bond certificates for the entire holding. Death Certificate of the deceased bondholder, in original or a copy thereof, duly attested, either by Notary Public or Special Executive Officer (S.E.O). If the market value of the subject bonds for transmission is below rupees Two Lakh, you may furnish to us duly executed Indemnity Bond on Rs.200/- and Affidavit on Rs. 100/- Non judicial Stamp Paper or duly Franked as per format enclosed alongwith No Objection Certificate, preferably in the enclosed Declaration / Affidavit format from other legal heirs if any for transmitting the bonds in yours name. If the total market value of subject bonds exceeds rupees Two Lakh, please furnish to us the certified copy of the Probate or Succession Certificate or Letters of Administration. Kindly furnish us with a Banker verification form duly attested by the Bank Manager, where applicant(s) have an account identifying the applicant(s) and their signature along with their self attested proof of identification and proof of address. PAN Card (Mandatory) as a proof of identity. Aadhar card, Passport, Utility bills like Telephone Bill,Electricity bill & Gas Bill not more than 3 months old. {Any one documents a proof of address} Further note that the attestation should contain the employee code of the person attesting the signature and the bank seal.
For securities held in Demat mode, please contact your depository participant.
The certificate would not have been received by you due to any of the below reasons:- It has been despatched but could not be delivered to your address due to either incomplete address or it is returned undelivered as door is locked or no such person at the address. The despatch of certificates is held back due to reasons like Non completion of KYC (Know your customer), Incomplete address. For such cases please contact LIIPL at the address/ Phone Nos. / email id mentioned on our website: www.linkintime.co.in
You can view your interest details on our website using the web address https://linkintime.co.in/bondsquery/ Alternatively you can contact LIIPL on the below: Email id : bonds.helpdesk@linkintime.co.in Phone:- 022 4918 6270 Address:- Link Intime India Pvt ltd C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai - 400083.
The issuers compile the terms of Issue for every series / issue of the debentures / bonds. Investors can refer to the terms of the issue from the offer documents posted by the issuer on their website of write to the issuer directly.
An IPO is an Initial Public Offer made by a company (issuer) offering shares or debentures or other tradable security to the public at large. An IPO is either for a) Fresh issue of capital, where the funds are received by the issuing Company. b) Offer for Sale – where the existing shareholders (usually promoters), sell their holding, in which case the funds do not go to the company but only to the offering shareholders. c) Combination of a) and b) above.
Fixed Price Offer, is an issue in which the price of the security offered is fixed by the issuer. Investor is required to make application for the desired quantity of shares at the fixed offer price.. On the other hand, in a Book Built Issue, Price is discovered through the bidding mechanism. Usually, a band (range) of the price is announced, and interested investors apply or bid for the security within this band i.e. the application can be for any price within this range
A bid in the context of Public offer of shares, is offer made by investor to the issuer for requisite quantity of securities at a price. The investor can choose any price within the specified price band of the issue. The price at which he wants to apply is the bid price. A bid is applicable only in case of book-building IPO.
IPO comprises of offer for subscription made by such company whose shares are not listed on any stock exchange for trading. Whereas FPO is offer made by already listed company to issue additional securities. For already listed company, investor may decide to buy from the market or subscribe to the offer made by the Company.
a) Qualified Institutional Bidders (QIBs) - who are the domestic and foreign institutions (which are registered with SEBI) which are eligible to apply in the public offers. These institutions normally apply for very large amounts. b) Retail Investors - The investors who invest up to maximum of Rs.2,00,000 (Rs. Two Hundred Thousand), are defined as Retail Investors. c) Non Institutional Investors - Those Investors who are neither in the QIB Category nor in the Retail Investor Category are defined as Non Institutional Investors. Note: In some IPOs a certain number of shares issued are reserved for employees of the issuing company.
SEBI (Securities' Exchange Board Of India) issues guidelines, which specifies the percentage of the total securities offered for each category of investors, from time to time. Currently, in any IPO, the allocation is usually - QIB - 50% HNI - 15% and Retail - 35% or QIB - 60% HNI - 10% and Retail - 30% of the Net Issue.
A BLRM is the Book Running Lead Manager, who manages the entire IPO exercise and acts as the guide to the issuer in all matters relating to the public issue. The BRLM, should be a SEBI- registered Category I or II Merchant Banker, and is responsible for preparing and filing the Offer Document of Issue with SEBI & Registrar of Companies (ROC).The BRLM ensures that all information presented before the investing public is proper. The BRLM advises the company on the price band, the timing of the issue etc. BRLM is required to market the issue. The BRLM also co-ordinates between the company and other intermediaries like registrars, legal advisors, bankers etc.
A Syndicate Member/Broker is a member of the Stock Exchange to whom the investor has to submit the IPO Bid/Application form. The Syndicate Member / Broker receives the bid and uploads the same on to the electronic book of the stock exchange. Bids which are not uploaded into the electronic book are not considered for the purpose of allotment. The Syndicate Member/Broker , then submits the bid with cheque to the bankers. In case of online application, , the Syndicate Member/Broker generates the electronic application form and submits the same to the registrar with proof of having paid the bid amount.
ASBA is the acronym for Applications Supported by Blocked Amounts. Investor is required to approach his banker to block the amount from his account for the application. This amount remains blocked in investor’s bank account and investor earns interest on the blocked amount. Investor’s banker then prepares bid based on the blocked amount and uploads the bid into the electronic book of the exchange. Post allotment process, registrar passes on necessary instruction to Investor’s banker to debit investor’s amount against allotment made, if any, and unblock the balance amount.
An SCSB is a Self Certified Syndicate Bank, who has systems in place, including the ability to upload the BID to the stock exchange system. Can a retail investor revise his/her bid? Yes, a retail investor can revise his/her bid any number of times during the issue period.
A retail investor can bid at any price within the price band or can bid at cut-off. Cut-off means the investor is ready to pay whatever price is decided by the company at the end of the book building process. While making the application at Cut off, the investor is required to pay the amount at the highest price band.. The excess amount, in case the price discovered is lower, is refunded. Cut-off option can be exercised only by Retail Investors and Employees of the issuing company applying in the Employee Category. Cut off option can be exercised through ASBA also.
A Bid-lot is the pre-determined number of shares which have to be applied for by an investor. It is different for each issue. There is a minimum lot size which is pre-decided by the company and mentioned in the application form. Eg: Minimum bid lot in IPO of XYZ co. - 10 Bid-lot Multiples of 10 Price Band - 100-120. It means that a retail investor cannot apply for less than 10 shares in that particular issue. The application for more than 10 shares has to be in multiples of 10 like 20,30,40,etc
Based on demand at various prices, Issuer Company, in consultation with BRLMs decides the final price of the offer. The price thus finalized is called discovered price.
As per SEBI guidelines shares allotted out of IPOs / FPOs can be given to investors only in demat mode hence it is mandatory to have demat account. Application not having demat account or improper demat account is rejected.
The DP-ID + Client ID, is the definitive identification of the applicant. Demat account fed into electronic bid file, is used to credit shares as well as remit refund. Registrar is required to process application based on bid file and in absence of any other possible validation, wrong but valid demat account, can lead to wrong refund / credit of shares. bid file, Thus it is very important that the Demat Account Number is stated correctly in the application form.
As per SEBI guidelines, all applicants are required to provide their PAN while applying in an Issue. Application without PAN or with invalid PAN is rejected. Investors are requested to ensure that their DP account is updated with proper PAN details.
Your Demat Account Number and PAN is clearly written without any smudging or overwriting. Your payment details like cheque number, or account number in case of ASBA , etc. are clearly written. Your bid is for the proper bid lot and a price within the bid range. The order of names in the application is the same as in your DP account. The application form is signed.
A Registrar to an Issue is a SEBI-registered entity, qualified to act as such, and who electronically processes all the applications and carries out the allotment process, as per the rules/prospectus. The Registrar is responsible for complying with the time deadlines of updating the electronic credit of shares to the successful applicants, despatching/uploading of refunds and attending to all investor related queries after the issue is completed. Usually, the Registrar continues to work with the company, even after the IPO, as its Registrar and Transfer Agent.
The Registrar’s role in an IPO can be divided into three phases: Pre-IPO, when the Registrar completes all preparatory work for the IPO, including instructing the escrow / ASBA bankers about the procedures they have to follow and the timelines to which they have to adhere. Post IPO closure but pre Listing –, during which the Registrar receives the Final BID file from the exchanges, validates the same, coordinates with the bankers to ensure that final collection certificates are received, all cheque returned cases are accounted, and withdrawals if any are taken note of . The Registrar identifies all other technical defects. The Registrar after considering all the rejects, withdrawals etc., and after reconciling the bank receipts, with the Final Bid file, prepares the basis of allotment in conjunction with the BRLMs and Issuer , and submits this basis for approval to the Stock Exchange. Upon approval by the Stock Exchange, the Registrar proceeds with the allotment of shares, ensures that the electronic files for credit of shares and refunds are properly prepared and ensures the completion of all these processes including over printing / despatch of allotment advices/ refunds within the prescribed time limits. Post allotment / listing phase during which the Registrar attends to all the complaints and strives for speedy resolution of the same.
As per current norms, the newly issued shares have to be listed , on or before the 12th working day after the issue is closed. Working backwards, this would generally mean that the allotment process and uploading of the shares, sending of refunds etc. have to be completed within 10 working days from the date of closure of the issue.
On the home page you would find the block 'IPO Allotment Status '. Click on and you would get the page. Select the desired company. Choose the option depending on whether your account is with NSDL or CDSL. Enter the details as per the option whether you want full details or only allotment details. Submit the same, and within moments the results would be displayed to you on the screen.
Credit to your demat account does not happen, if a) Your demat account is not active and there is a bar on accepting credits to your account. b) Your demat account number is not accepted by the system as a result of mismatch of data. c) Your demat account as provided in bid file is erroneous
Ensure that your DP account is active and is in ready state for receiving credits. Provide a copy of your Client Master to Registrar to enable upload of your allotted shares in your account. Copy can be sent by Fax/Scanned image.
A Refund Order is the value instrument being the difference between the amount remitted by you along with your application and the amount due from you on account of the allotted shares * issue price.
Refund are effected in the following ways: Through Physical refund orders, which are despatched by Speed Post or Registered Post, to the address as mentioned in your DP account. Through Electronic files uploaded by the refund banker for RTGS (Real Time Gross Settlements) in case of very high value instruments. Through direct credit to account in case the refund banker and your bank are the same. Through NECS in case you have opted for the same by registering your account details with your DP, and your bank location is covered by the NECS system.
The Registrar has to despatch the Refund order and upload the electronic credit/NECS within 12 working days after the Issue Closure. (Normally before the end of business hours on the 10th working day after the issue closes.
Normally, you should get the refund order by post, within 5 days from date of mailing.
You can enable this facility by giving a simple instruction to your DP ( as per their format) with the details of MICR code etc. Your DP would be able to guide you in this matter. Once you submit this instruction in the proper manner, the DP would effect this on the system, and thereafter you can expect refund thru NECS, provided that your bank location is covered by the NECS system.
Once refund data is made available to refund bankers and are uploaded by them into clearing system, the banking channel usually takes two to six days.. Please note that the Registrar to Issue has no control what so ever, after handing over the NECS data to Refund banker.
You should do the following: a) Check up your DP account to find out the Bank details mentioned therein. Ensure that your DP account is always updated with proper Bank details. b) Check with the bank branch as mentioned in your DP account whether the money is received at the branch - you should take the NECS advice with you for confirmation. In case branch has received the same but credited to some other account, ensure that immediate corrective action is taken. c) In case the branch has not received the credit, request your bank personnel, to ensure that the credit flows to the branch and to your account immediately. d) Kindly note that if your bank account is not credited, your bank has to confirm the same to the refund banker. Only on receipt of such confirmation the refund banker will be in a position to initiate process of issuance of physical warrant. Refund bank requires five/six days to prepare and hand over physical refund instrument to registrar after receipt of intimation from your bank.
You can trade in new shares after they are listed and after ensuring that the allotted shares have been credited into your Demat Account. As per current rules, you cannot affect any off market transfers from your account till the shares are listed.
A record date is reference date for freezing list of shareholders who become eligible to receive corporate benefit like rights entitlement, Bonus shares, dividend etc. . Investors holding shares in demat mode have to ensure that their DP account shows shares held as on that date.
As per current norms, a Rights Issue has to be open for a minimum period of 15 days
CAF is the acronym for Composite Application Form. The CAF is sent to all the shareholders as on the record date, informing about their holding, the number of shares to which they are entitled to apply as rights, and the price of the rights shares. The CAF also contains part B C & D, which contains the parts where the renouncee can apply, and the part containing the split request.
A shareholder can renounce (or forego) the total or part of his/her entitlement in favour of a third party, who then becomes the renouncee.
Renouncement can be for part or for full portion of the entitlement In case shareholder renounces full / part of his holding, he becomes ineligible to apply for additional shares.
In the event a shareholder wishes to renounce a part of his / her entitlement or wishes to renounce the full entitlement in favour of more than one third party, a request can be made to split the entitlement form (CAF) into as many denominations as required. For eg: if there is an entitlement for 5000 shares as rights, a split request can be made for 5 forms of 1000 shares each.
Applicants will have to send Original CAF duly signed by registered shareholder in Part ‘D’ meant for split, specifying the denomination of split of the entitlement and send the same to the Registrar’s office, within the time specified.
It is not necessary to apply only in the CAF sent. The shareholder can apply on plain paper format, which should contain all the essential fields. Forms can also be downloaded from the company’s or Universal Capital Securities Pvt Ltd website.
No. Shareholders cannot renounce their entitlement when applying through plain paper format
You can get a duplicate CAF by addressing a letter or request to the Registrars.
Irrespective of the application amount, PAN is to be compulsorily mentioned in the application form for all holders
The DP-ID + Client ID, is a 16 digit definitive identification of the applicant. It is based on the Demat Account, that allotted shares are credited and refunds, if any, are processed. A wrong but valid demat account no. can result in shares being credited to a different account and refund if any being sent to that account holder. Thus it is very important that the Demat Account Number is stated correctly in the application form. However in case of Rights Issue , if the Demat Account is inactive or invalid , the shares are allotted in Physical format
Yes, one can apply for rights like in an IPO through ASBA. However, Please note that all Eligible Equity Shareholders (other than renouncees and holding equity shares in physical form) who are QIBs, Non-Institutional Investors (including all companies and body corporates) and other retail Applicants whose application amount exceeds Rs.2,00,000 can participate in the Issue only through the ASBA process
In a Company Fixed Deposit, a certain sum of money is deposited with a company which is registered under the Indian Companies Act for a specified period of time, usually six months to 5 years, for earning a fixed rate of interest. Companies offer attractive rates of interest under their Schemes for varying periods either on cumulative or non cumulative basis. Tax will be deducted at the source, if the interest income earned by a Depositor exceeds Rs.5000/- in a Financial Year as per the current rules.
Individuals either singly or jointly can apply for investing in a Company FD. The First holder is considered for the purpose of payment of interest and tax. Apart from individuals, some companies also accept FDs from HUFs, Trusts, Associations,
Usually PAN Card details of the sole/first applicant are collected by Companies for Tax purposes. Under the current Income Tax Rules, if PAN is not provided to the Company, the Company will have to deduct Tax at a higher rate and TDS exemption will not be available even if a declaration is submitted as provided in the later paragraph.
Generally Companies registered under the Indian Companies Act, offer to accept monies under their FD Schemes. These Companies can be Manufacturing Companies (whose schemes are covered under the Companies Act), Housing Finance Companies (Covered under National Housing Bank Rules) or Non Banking Finance Companies (NBFCs coming under the RBI purview).
Usually, two types of FD scheme are on offer: # Cumulative Scheme: In a cumulative scheme interest as well as the principal amount is paid only on the maturity of the FD. Interest accrued on the FD is compounded monthly/quarterly etc. as per the FD Scheme. # Non-Cumulative Scheme: In Non-cumulative scheme the interest is paid in a periodical manner as per the terms of the FD scheme (Monthly, Quarterly, Half-yearly and yearly basis). The principal amount is paid on maturity.
The minimum amount may vary from company to company depending upon their Scheme.
Yes, FD receipt is issued to the Applicant giving all the terms and conditions of the Fixed Deposit.
Generally most Companies offer extra benefits in the form of higher interest rates to Senior Citizens and other special categories. The additional interest rate as well as categories may again differ from company to company.
Some Companies offer Senior Citizen Benefits to individuals above the age of 60 years also. However as per current Income Tax rules, individuals above the age of 65 years are considered as Senior Citizens for income tax purposes.
No, there is no auto renewal facility available on company FD’s. In order to renew the existing FD, the investor has to send a fresh application along with the duly signed FDR in general 15 days prior to the date of maturity. Renewal of FD and payment of further interest on matured FDs will be at the sole discretion of the company.
The original fixed deposit receipt duly discharged on a revenue stamp should be submitted to the Company/Registrars (Universal Capital Securities Pvt Ltd) as mentioned on the FD along with a covering letter giving all details to effect the payment.
No. Company FDs are non- transferable.
No. Loan facility is generally not available under Company FD Schemes.
Yes, the FD amount can be withdrawn before maturity as per the discretion of the Company. However incase of premature withdrawal of FD, interest would be payable as per the provision of the FD Scheme of the Company. Generally Pre-mature withdrawal of FD is not permitted within 6 months.
TDS (Tax Deducted at Source) is deducted from the interest payable on Fixed Deposits, as per the provisions of the Income Tax Act, 1961.
If the aggregate interest income that you are likely to earn on your deposits exceeds Rs 5,000 in a financial year, you become liable for TDS.
If you are not a Tax payer, you may submit a Declaration in Form 15G/H for each Financial Year as applicable to you with the registrars before the interest falls due, so as to avoid TDS deduction
Yes, nomination facility is available for Individuals.
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