54 EC Capital Gain Bonds
Issue Highlight Capital Gain Bonds – 2022-23
| Issue | REC 54 EC Capital Gain Tax Exemption Bonds – Series XVI |
| Rating | “CRISIL AAA”, “CARE AAA” , “ICRA AAA” |
| Issue Size | 1500 Crore plus green shoe option to retain the oversubscription |
| Coupon Rate | 5.00% |
| Issue Date | Issue Opening Date : 1 April 2022 Issue Closing Date : 31 March 2023 |
| Minimum Application Size | Two Bonds of 10,000 each (i.e. Minimum 20,000) |
| Maximum Application Size | 500 Bonds of 10,000 each (i.e. Maximum 50,00,000) |
| Mode of Subscription | Private Placement |
| Cheque to be drawn in the Name of | ” REC Limited – 54 EC Bonds ” or “Rural Electrification Corporation Limited – 54 EC Bonds “ |
| Deemed Date of Allotment | Last day of each month in which the subscription money is received and credited to REC 54 EC collection account |
| Interest Payment & Date | Annually on June 30 of each year |
| Redemption / Maturity | At par, at the end of 5 year / 60 month from the deemed date of Allotment |
| Transferability | Non-transferable , non-negotiable & cannot be offered as a security for any loan or advance |
| Issue | PFC Capital Gain Tax Exemption Bonds –Series VI |
| Credit Rating | “CRISIL AAA”, “CARE AAA” , “ICRA AAA” |
| Issue Size | Rs 500 crore + Green Shoe option to retain oversubscription |
| Coupon Rate | 5.00% |
| Issue Date | Issue Opening Date : 1 April 2022 Issue Closing Date : 31 March 2023 |
| Minimum Application Size | Two Bonds of 10,000 each (i.e. Minimum 20,000) |
| Maximum Application Size | 500 Bonds of 10,000 each (i.e. Maximum 50,00,000) |
| Mode of Subscription | Private Placement basis |
| Cheque to be drawn in the Name of | PFC Capital Gain Bonds |
| Deemed Date of Allotment | Last day of each month in which the subscription money is received and credited to PFC Capital Gain Collection Account |
| Interest Payment & Date | Every year on 31st July till redemption and balance along with redemption |
| Redemption / Maturity | 5 years from the deemed date of allotment |
| Transferability | Non-transferable , non-negotiable & cannot be offered as a security for any loan or advance |
Registrar & Transfer Agent
KFIN Technologies Pvt. Ltd
| Issue | IRFC Capital Gain Tax Exemption Bonds –Series VI |
| Credit Rating | “CRISIL AAA”, “CARE AAA” , “ICRA AAA” |
| Issue Size | Rs 1000 crore + Green Shoe option to retain oversubscription |
| Coupon Rate | 5.00% |
| Issue Date | Issue Opening Date: April 1, 2022 Issue Closing Date: March 31, 2023 (at the close of the banking hours) or at a date / time as may be decided by IRFC in its absolute discretion |
| Minimum Application Size | Two Bonds of 10,000 each (i.e. Minimum 20,000) |
| Maximum Application Size | 500 Bonds of 10,000 each (i.e. Maximum 50,00,000) |
| Mode of Subscription | Private Placement basis |
| Cheque to be drawn in the Name of | IRFC Capital Gain Bonds |
| Deemed Date of Allotment | Last day of each month in which the subscription money is received and credited to IRFC Capital Gain Collection Account |
| Interest Payment & Date | Every year on 15TH OCTOBER till redemption and balance along with Redemption |
| Redemption / Maturity | At the end of 5 years from the Deemed Date of Allotment |
| Transferability | Non-transferable , non-negotiable & cannot be offered as a security for any loan or advance |
54 EC Capital Gain Bonds -Registrar & Allotment Status
Individual, Hindu Undivided Family (HUF), approved institution and non-resident Indian (NRI), can invest in these bonds provided certain conditions are met. The condition is that only long-term capital gains (LTCG) earned by selling a residential flat or independent house, which you held for at least three years, can be invested in this bond.
Current Interest Rate 5 % (effective date 1 Aug. 2020 ) for these bonds. You will be paid the interest on the 30th of June every year.
You are required to make a minimum investment of Rs 10,000, while the maximum amount you are permitted to invest is Rs 50 lakh in a financial year. Since, the face value is Rs 10,000 per bond, you can buy maximum of up to 500 bonds in one financial year.
The lock-in period will be 5 years with effect from April 1, 2019. ( Old lock-in period 3 years)
50 lakhs is the maximum amount that can be invested in these capital gain bonds.
REC (Rural Electrification Corporation), IRFC (Indian Railway Finance Corporation), PFC (Power Finance Corporation) and NHAI (National Highways Authority of India) are the bonds eligible under Section 54 EC.