Last year in the budget the Government approved issuance of long term tax-free bonds under Sec 80CCF of the Income Tax Act for tax-saving investments for additional Rs. 20,000, over and above the Rs. 100,000 limit earlier to boost up the Infrastructure activities in wake of fund shortage in Infra sector.

L&T Infrastructure Finance Company or LTIFCL is offering two option for investment :-

Series 1: 8.20% annual coupon paying 10 year Bond with a Buyback option at the 5 years and at the end of 7 years.
Series 2: 8.30% cumulative coupon paying 10 year Bond with a Buyback option at the 5 years and at the end of 7 years.

Both the scheme has buyback option which makes it attractive over the other current ongoing offers.

Offering : The issue will open on Monday, 7th February 2011 and closes on Monday, 7th March 2011 .

Deemed Date of Allotment : Not Updated Yet.

LISTING and Trading : There is a proposal to list L&T Infra Bond – 2011A Series on NSE , however trading will only allowed after 5 year of completion and will be only for DEMAT mode applicant only.

TAX Saving : On a investment of Rs. 20,000/- a person with higher tax liability can saves tax upto Rs. 6,180/- with an interest as a bonus of Rs. 1640/ per year (8.2% on Series I, as in this option Interest will be dispatched each year) .

Scheme Benefit : The Infra Bond scheme is beneficial for them who already availed the tax benefit of Rs. 1,00,000/- (One lakh) under the various tax-saving instruments Under Section 80C, 80CCC, 80CCD.

Frequency of Interest :

Series 1 : Annually i.e. the amount of interest will be paid on yearly basis.

Series 2 : Cumulative i.e. the amount of interest will be paid at the time of maturity (10 years) or Buyback (5/7 Years) , as applicable.

Buy Back Amount :

Series 1 : Rs. 1,000/- at the end of 5 Year & Rs. 1,000/- at the end of 7 Year.

Series 2 : Rs. 1,490/- at the end of 5 Year & Rs. 1,748/- at the end of 7 year.

Maturity Amount :

Series 1 : Rs. 1,000/- at the end of 10 Years.

Series 2 : Rs. 2,220/- at the end of 10 Years.

Points to be noted :-

1. Bonds will be accepted in both physical & demat form. Please write sole/ First applicant’s name , phone no & application number on the reverse of the cheque.

2. Investor applying under physical mode along with form & cheque, need to provide self attested copies of PAN & address proof & self attested cancelled cheque.

3. One bond is of Rs 1,000/-. Minimum application is of 5 bonds & in multiples of one bond thereafter. An applicant may choose to apply for 5 bonds of same series or bonds across different series.

4. Cheque /DD should be drawn in favour of “L&T INFRA BONDS 2011A” . It should be crossed a/c payee only.

5. Buyback facility is available only after 5 years of date of allotment . (under Scheme Series – I & II)

6. Interest rate is 8.2% p.a. & 8.30% p.a. under the different plan.

7. There is no interest on application money & interest on refund application amount.

However, in case of allotment then Interest on application money (at the prescribed rate) from the date of credit in L&T Infrastructure Finance Company Limited, Bank Account to the date of allotment shall be paid with first annual interest payment. The Rate of Interest for the same is fixed at 6% P.A, and will be calculated on day basis.

In case you need forms kindly request below or mail us on investor@tradingideas.in , mentioning your name, location & mobile number. You can directly call us on 09333142627 or 9641991905 .

REC, is offering 8% (for buyback after 5 years) and 8.10% (for a fixed tenure of 10 years – non buyback)  coupon rate on this private placement.  Unlike with other Infra Companies, its not offering cumulative schemes. The first annual interest shall be paid on 31 March 2012 thereafter it will be credited or dispatched every year.

Offering : The issue will open on Wednesday, 12th Jan 2011 and closes on Monday, 28th March 2011 .

Deemed Date of Allotment : 31st March, 2011 .

Registrar : Registrar for the issue is Beetal Financial & Computer Services (P) Ltd.

Mode of allotment : Demat & Physical .

LISTING and Trading : There is a proposal to list REC Long Term Infra Bond on NSE or BSE or on both exchange, however trading will only allowed after 5 year of completion and will be only for DEMAT mode applicant only.

TAX Saving : On a investment of Rs. 20,000/- a person with higher tax liability can saves tax upto Rs. 6,000/- with an interest as a bonus of Rs. 1600/ per year (8% on Option I)  .

Scheme Benefit : The Infra Bond scheme is beneficial for them who already availed the tax benefit of Rs. 1,00,000/- (One lakh) under the various tax-saving instruments Under Section 80C, 80CCC, 80CCD.

Loan Facility : An investor can check for loan facility after the lock-in period.

Points to be noted :-

1. Bonds will be accepted in both physical & demat form. Please write sole/ First applicant’s name , phone no & application number on the reverse of the cheque.

2. Investor applying under physical option along with form & cheque, need to provide self attested copies of PAN & address proof & self attested cancelled cheque.

3. One bond is of Rs 5000/-. Minimum application is of 2 bonds & in multiples of one bond thereafter. An applicant may choose to apply for 2 bonds of same series or bonds across different series.

4. Cheque /DD should be drawn in favour of  REC Long Term Infra Bond . It should be crossed a/c payee only.

5. Buyback facility is available only after 5 years of date of allotment . (only under Scheme Option – I)

6. Interest rate is 8% p.a. & 8.10% p.a. under the different plan.

7. There is no interest on application money & interest on refund application amount.

However, in case of allotment then Interest on application money (at the prescribed rate) from the date of credit in REC Bank Account to the date of allotment shall be paid with first annual interest payment.

In case you need forms kindly request below or mail us on investor@tradingideas.in  , mentioning your name, location & mobile number.  You can directly call us on 09333142627 or 9641991905 .

The issue will open on Monday 17th Jan 2011 and closes on Friday, 4th Feb 2011 .

The registrar for the issue is Karvy Computeshare Pvt Ltd .

The banker for the issue are , you can deposit the form in selected branches of the mentioned bankers.

1. HDFC Bank
2. AXIS Bank
3. ICICI Bank
4. IDBI Bank
5. KOTAK Bank

Mode of allotment : PHYSICAL & DEMAT mode.

Points to be noted :-

1. Bonds will be accepted in both physical & demat form. Please write sole/ First applicant’s name , phone no & application number on the reverse of the cheque.

2. Investor applying under physical option along with form & cheque, need to provide self attested copies of PAN & address proof & self attested cancelled cheque.

3. One bond is of Rs 5000/-. Minimum application is of 2 bonds & in multiples of one bond thereafter. An applicant may choose to apply for 2 bonds of same series or bonds across different series.

4. Cheque /DD should be drawn in favour of “IDFC Infra Bonds-Tranche 2″. It should be crossed a/c payee only.

5. Buyback facility is available in both the option after 5 years i.e, in Annual Interest option & Under Cumulative Option.

6. Interest rate is 8% p a.

7. There is no interest on application money & interest on refund application amount.

In case you need forms kindly request below or mail us on investor@tradingideas.in , mentioning your name, location & mobile number.