What Are Tax Free Bonds:

The Government of India vide notification 59/2015 dtd.6/7/2015 has authorized certain entities to issue tax -free secured redeemable non- convertible bonds during the Financial year 2015-16. The Bonds can be held either in physical or in D-mat mode. However, PAN is mandatory for investing in these bonds.

Issue Highlights:

Issue Size Rs. 3500 Crores. The issue will  open on Wednesday, March 9, 2016 and scheduled to be closed on Monday, March 14, 2016. The Issue may close on such earlier date or extended date as may be decided by the Board or a duly constituted committee thereof. The Allotment will be on First Come First Serve Basis. The Rating is "CRISIL AAA" by CRISIL & "IND AAA" from IRRPL.

The Bonds are offering Tax Free Interest upto 7.64% p.a.

Key Benefits of Investing in NABARD Tax Free Bonds:

·         Interest income from these bonds is TAX FREE.

·         The Bonds are secured and Rated "AAA" by CRISIL, "IND AAA" by IRRPL

·         These bonds can be held in Demat and in physical form as well.

·         These Bonds will be listed on Stock exchanges (BSE), Investors who wish to exit before the maturity date can do so by selling bonds in secondary market at prevailing market price.