In the secondary market, we currently allow dematerialization of bonds and debentures.
You must submit a de-materialization request by filling out the form below, and the RTA must accept it. We’ll begin the dematerialization process once we receive RTA permission.
1. For each scrip/business, make three copies of the dematerialization request form (3 DRFs will suffice for up to four bond certificates from the same firm). If you have more than four certificates, you will need to submit an additional DRF). You must select the ‘Bond’ option from the ‘Type of security’ drop-down menu.
2. The Client ID should be mentioned in the ‘Signature with DP’ and ‘Signature with RTA/Issuer’ columns of the DRF (Dematerialization Request Form) (If It is a joint account then both the holders need to sign).
3. Along with the DRFs, the original bond certificates must be supplied. (A photocopy can be kept with you.)
4. A copy of your PAN that has been self-attested.
The RTA (Registrar And Share Transfer Agent) will take up to 25 days to finish the dematerialization process once you submit the following.
To begin the process of dematerializing your physical bond certificates, please submit a ticket using the form below.
How are IFCI Infrastructure Bonds redeemed?
This is to inform investors that, as per the Information Memorandum of August 09, 2010, the opportunity to exercise the option of buyback is available for bonds held in Option I and II, as shown in the table below:
If you wish to exercise the buyback option available in 2017, you must download and send the duly signed Buyback Option Form, after carefully reading the instructions contained therein, to the Registrar & Transfer Agent during the buyback intimation period listed in the above table, which is no later than August 31, 2017.
If bonds are held in physical mode, payment will be made only upon submission of the ORIGINAL BOND CERTIFICATE; if bonds are held in demat form, payment will be made only upon extinguishment of bonds. As a result, please make sure your demat account is current.
If you have any questions, please contact the Registrar & Transfer Agent at Registrar & Transfer Agent at Registrar & Transfer Agent at Registrar & Transfer Agent at Registrar & Transfer
What is the procedure for redeeming infrastructure bonds?
Bonds are redeemed Registered bondholders relinquish their legally discharged bond certificates (by signing on the reverse of the bonds with a Revenue Stamp of Re. 1/-) on the date of maturity. The redemption record date is one month before the deemed encashment / redemption date.
What are the steps in the dematerialization process?
Purchasing dematerialized securities entails the following steps:
- Step 2: Pay the broker, who will then arrange for the clearing corporation to be paid on the pay-in day.
- On the pay-out day, the securities are credited to the broker’s clearing account.
What are the steps involved in dematerializing shares?
If you own physical shares and want to transfer them after April 1, 2019, you may be unable to do so. You can hold shares in physical form after April 1, 2019, according to a notification issued by the Securities and Exchange Board of India (Sebi) in June this year, but you can only transfer them if they are in demat form.
In these days of electronic trading and the Internet, paper share certificates are an anachronism. The majority of shares are now dematerialized, or in electronic form. There are no paper certificates, and your shares are maintained in a demat account, which keeps track of your holdings. The National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL) manage all demat accounts in India (CDSL).
A little over 2% of shares are still held in paper form, according to estimates. If you still have physical share certificates stashed somewhere, now is the time to dust them off and convert them to digital form. You might wonder why. From April 1, the Securities and Exchange Board of India (Sebi) has made it essential to transfer shares solely in demat form in order to increase transparency and prevent fraud. This does not preclude you from owning shares in their physical form, but it does prevent you from transferring them, potentially lowering their value.
To begin, you must first open a demat account. A depository participant (DP), which may be your bank or stockbroker, can handle this. Fill out a form and attach copies of proof of address and identification documents (PAN card, Aadhar card, passport) as well as a passport-size photograph.
The DP will open a demat account in your name with your personal account number after processing the document. The demat account is similar to a bank account in that it keeps track of your shares rather than money.
You can open a demat account online with some brokers. You must produce scanned copies of the appropriate documents to accomplish this. A video chat will be used to do an in-person verification.
You must return the physical certificates to the DP together with a Dematerialisation request form after opening the DP account (DRF). Separate DRFs should be used for different companies’ securities.
You must deface the certificates before submitting them by writing “SURRENDERED FOR DEMATERIALIZATION” on them. The DP will next double-check that all of the information on the form is correct, such as the quantity of certificates, securities, and kind. It will then provide you with an acknowledgement slip.
The depository participant will send the certificate, form, and covering letter to the issuer or R&T (registrar and transfer) agent when you submit the DRF and share certificates. The issuer or R&T agent will accept the dematerialisation request in his system and forward it to the National Securities Depository Ltd (NSDL), the central securities depository, if everything is in order. The NSDL’s depository module will then authorize the creation of appropriate credit balances for the surrendered shares in your account. You can then check your demat account to see if everything is in order.
Your request for dematerialisation may be denied by the DP in some circumstances. These are some examples:
- If the share certificates have been tampered with and the information is difficult to read. You may need to return the certificates back to the issuer/R&T agency and request fresh ones in this situation.
How can I purchase infrastructure bonds in 2021?
If you have a demat account, you can apply to invest in an infrastructure bond online. You must complete an online application form.
These relationships can be applied for in a physical form. You’ll need a PAN card that has been self-attested. As part of the KYC (Know Your Customer) procedure, you must provide proof of identity and address.
After the lock-in period has expired, these bonds can be exchanged on stock exchanges like stocks.
Is IFCI bond interest taxable?
Is it true that these infrastructure bonds are tax-free? No, the interest on these bonds is not tax deductible. The interest earned by the investor is subject to taxation.
What exactly is an IFCI bond?
Instrument. Series-I Unsecured, Redeemable, Non-Convertible Long-Term Infrastructure Bonds with benefits under Section 80 CCF of the Income Tax Act of 1961. Bonds have a face value of $5,000/- each. Date of Allotment Assumed.
What happens when infrastructure bonds reach their maturity date?
As a result, the tax-advantaged long-term infrastructure bonds were not really tax-free bonds.
The annual interest payout option and the cumulative interest option were both available to the investors.
While investors who chose annual interest distributions have already paid tax on the amount of interest received, those who chose the cumulative option would pay more tax in the year of investment than they saved in the year of investment.
Confusion over Tax-Saving vs. Tax-Paying Infrastructure Bonds
Taxpayers who take advantage of free bonds end up paying more in taxes than they receive in benefits.
Taxation
Because the interest on long-term infrastructure bonds is taxable, the interest earned by the investors annually for those who chose the annual option and aggregate on maturity for those who chose the cumulative option will be added to their taxable income.
As a result, tax payable will be lower for investors in lower tax bands and higher for those in higher tax brackets.
TDS
For Resident taxpayers who choose the cumulative option in physical format, the interest payment will be subject to a 10% Tax Deducted at Source (TDS) if the interest payment upon redemption exceeds Rs 5,000.
The TDS rate will increase to 20% if the bondholder does not have a valid PAN or if the investor has not submitted his tax returns for the last two years and the total TDS and TCS in each of those years is Rs 50,000 or higher.
TDS of 31.2 percent would be applied to interest payouts for non-resident taxpayers.
How to save TDS
Resident bondholders must submit Form 15G / 15H, as appropriate, to avoid TDS. Those who did not disclose their PAN data at the time of investment must update their PANs with the various RTAs within the time frames set by the bond issuers.
Non-Resident bondholders must submit a tax officer’s order under Section 197 / 195 setting NIL / lower TDS rates to the appropriate RTAs before the deadline to guarantee that TDS is collected at the rates provided in the order.