PFC (Power Finance Corporation) is issuing Tax Free Secured Redeemable Non-Convertible Debentures (interest on these debentures is tax free in the hands of the investors). The interest rate is very attractive at 8.20% tax Free for 10 Years and 8.30% tax free for 15 Years. This NCD issue being issued by a statutory Authority like PFC has the highest safety and would be of very high degree of interest to all kinds of investors Like Corporates, Banks, Individuals both HNI and Retail and NRIs.

 
CLICK HERE… To download the e-application form
 
PFC Tax Free Secured Redeemable Non Convertible Debentures” (TERM SHEET)
Issuer Power Finance Corporation Ltd.
Issue Structure Tax Free, Secured, Redeemable, Non Convertible Debentures
Issue Opens 30th December 2011
Issue Closes 16th January 2012
Tenure 10 years 15 years
Coupon 8.20% p.a. 8.30% p.a.
Issue Size Shelf Limit of Rs.4033.12 crores
Credit Rating “AAA” by CRISIL & ICRA
Face Value Rs.1000 per bond
Minimum Application 10 Bonds i.e. Rs.10,000/- and in Multiples of Rs.5000
Interest on Refund 5% p.a.
Interest on application money on successful application Coupon Rate
Issuance Both in physical as well as in demat mode
Listing Proposed to be listed on BSE
Trading Compulsorily in Demat Mode
Trading Lot One Bond
Note – NRIs can also invest
Loan Against Bond Can be Pledged or Hypothecated
 
 
Issue Break up
Allocation /
Prority
Category I
Category II
Category III
Upto 50% of Overall Issue Size* Upto 25% of Overall Issue Size* Upto 25% of Overall Issue Size#
>5Lacs <= 5 Lacs
*on first come first serve basis to be determined on the basis of date of receipt of applications duly acknowledged by the Bankers to the Issue
#on proportionate basis
 
 
HIGHLIGHTS OF TAX BENEFITS
In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of Section 10 of the Income Tax Act, 1961 (43 of 1961) the Central Government authorizes PFC to issue during the FY 2011-12, Tax Free, Secured, Redeemable, Non-convertible Bonds.  
The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under section 10 (15) (iv) (h) of I.T. Act,1961.  
There will be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors.  
Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.  
   
 
Categories of Investors/ Who Can Apply
Investor Categories Category I Category II Category III
Who can
apply

• Public Financial Institutions, Statutory Corporations, Scheduled
Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorised to invest in the Bonds;
• Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorised to invest in the Bonds;
• Insurance companies registered with the IRDA;
• National Investment Fund;
• Mutual Funds;
• Foreign Institutional Investors (including sub-accounts)
• Companies; bodies corporate and societies registered under the
applicable laws in India and authorised to invest in the Bonds;
• Public/private charitable /religious trusts which are authorised to invest in the Bonds;
• Scientific and/or industrial research organisations, which are authorised to invest in the Bonds;
• Partnership firms in the name of the partners; and Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009)

The following investors applying for an amount aggregating to above 5 lakhs across all Series in each tranche

The following investors applying for an amount aggregating to upto
and including 5 lakhs across all Series in each tranche

• Resident Indian    individuals;

• Resident Indian individuals;

• Hindu Undivided Families through the Karta; and Non Resident
Indians on repatriation as well as non-repatriation basis.

• Hindu Undivided Families through the Karta; and Non Resident

Indians on repatriation as well as non-repatriation basis.
 
 
SFSPL INB010982338 (BSE CM) | SFSPL INB230607435 (NSE CM)
SFSPL INF010982338 (BSE F&O ) | SFSPL INF230607435 (NSE F&O )
SFPSL INE230607435 (NSE CDX) | SFPSL INE260607435 (MCX- SX CDX)
SFPSL INB260607438 (MCX- SX CM) | SFPSL INF260607438 (MCX- SX F&O)
SFSPL DP:INDPCDSL1942002 (CDSL)
SCPL NBFC : N-13.01901 (RBI)
Portfolio Manager SFCL INP000001116
SGCPL MCX : MCX / TCM / CORP / 0179
SGCPL NCDEX : NCDEX / TCM / CORP / 0333
SGCPL ICEX : ICEX / TCM / CORP / 0017
Direct Insurance Broker (Life & General) IRDA License No.- 427
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