Rural Electrification Corporation Limited or REC opens its public issue of Tax Free Bonds of the face-value of 1,000 each aggregating up to a total of 4,500 crores. The income by way of interest on these Bonds is fully exempt from Income Tax under Section 10(15)(iv)(h) of the Income Tax Act, 1961 and shall not form a part of the total income.
The issue has 2 investment options - 7.72% p.a. (10 Yrs) & 7.88% p.a. (15 Yrs) for investments upto 10 Lakhs and 7.22% p.a. (10 Yrs) & 7.38% p.a. (15 Yrs) above 10 Lakhs.
The issue starts on December 3, 2012. Allotment will be on a first come first serve basis across all categories.The REC issue has been rated "CRISIL AAA/Stable" by CRISIL, "CARE AAA" by CARE, "IND AAA" by IRRPL and "[ICRA] AAA" by ICRA.
These bonds are tradable and are not subjected to any lock-in.
