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The bonds in the form of promissory notes, being
negotiable instruments are transferable by endorsement
and delivery by the transferor. The transferor
has to affix his/her signature at the place indicated
on the reverse side of the bond certificate and
the transferee has also to write his name and
affix his/her signature at the appropriate place.
The vernacular endorsement must be translated
into English immediately below the name. In case
of thumb impression, it is required to be attested
by the authorised person (Magistrate, notary public,
gazetted officer, managers of nationalised banks
or officer of IDBI).
Please ensure that the buyers and sellers have
signed at appropriate places in the certificate
and the buyer's address is given in full including
pin code and telephone and fax number, if any
in a separate letter.
Please ensure that the transferor has put his
signature in full and that all the holder(s) of
the bond certificate have signed the endorsement.
If the bond certificate is signed by the constituted
Attorney of transferor, please ensure that the
registration number of the Power of Attorney registered
with IDBI/Registrar is mentioned on the reverse
of the certificate. Otherwise, the transferor
may be requested to have the Power of Attorney
immediately registered with the Registrar/IDBI
before approaching for transfer.
In case a transferee wishes to have the bond certificate
signed by his constituted Attorney, it will be
necessary to attach the necessary Power of Attorney
duly notarised. Please note to obtain a registration
number from IDBI. In case the transferee is acting
through his constituted Attorney, and his Power
of Attorney has already been registered with IDBI,
please quote the registration number at the appropriate
place.
In case the purchaser is already having an existing
folio number in the same scheme, please quote
the same to enable us to register new bonds in
the same folio number.
Payment of interest on bonds is made to registered
bondholders only. In case of transfer, the transferee
is advised to register his name with IDBI. Investors
are advised to register their transfer before
the record date i.e. 1 month prior to date on
which interest is due or before mailing post dated
warrants for monthly income scheme.
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| Transmission
of Bonds in case of death of bondholder |
Transmission
of bonds certificate arises in case of death
of the registered bondholder. A copy of the
death certificate of the deceased registered
bondholder duly attested by authorised person
(magistrate, notary public, gazetted officer,
managers of nationalised banks or officials
of IDBI) may please be sent alongwith the bond
certificate. If the bonds are held in joint
names, only the deceased bondholder's name will
be deleted.
In case a bond is held by two or more holders,
the bond will be transmitted to the survivor
or survivors and on the death of the last survivor,
to his executors, administrators or any person
who is the holder of a succession certificate
in respect of such bond.
In case of single bondholder, the bonds will
be transmitted in favour of those persons who
are executors or administrators of a deceased
registered bondholder as per the Will executed
by him.
In case the deceased bondholder has not left
any Will, transmission of the bonds will be
effected to the heirs of the deceased bondholder
only on production of succession certificate
or letter of administration.
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| Transposition
(change in the order of holders) |
Transposition can be resorted
to change the order of holders of the bonds inter
se i.e. the first holder may become second holder
or third holder and vice versa. The same procedure
as in the case of transfer should be followed.
Bondholders will sign as transferor in the order
mentioned in bond certificate (original order)
and will mention their names and signature as
transferee in revised order. All requests for
transposition should be sent to the Registrar
alongwith the duly filled in endorsement on the
reverse of the bond.
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| Addition
of name of second or third holder in the certificate
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When a certificate is in the
name of single person or two persons and he/she/they
desire/s to add one or more name(s) (allowed upto
three) as joint holders of the bond certificate,
he/she/they is/are advised to follow the procedure
applicable to the transfer of bond certificate
(i.e. the original holder(s) has/have to sign
on reverse side of the bond certificate as transferor(s)
and then the original holder(s) and additional
holder(s) has/have to write their name(s) and
affix signature(s) as transferee at appropriate
places). In case the name to be added is that
of minor, the minor's name to be written first,
below which the guardian's name has to be written
under the same column. Signature(s) is/are to
be put as explained above. The certificate may
be forwarded to the Registrar/IDBI for registration.
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| Nomination
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IDBI bonds
have facility for nomination. The sole bondholder
or all the holders jointly or the surviving holder
or holders may nominate one or more persons not
exceeding four, including a minor, who shall in
the event of death of sole holder or all the joint
holders, be entitled to the amounts payable in
respect of bonds. Where the nomination is in the
name of more than one person, the nominee first
named shall alone have the right to receive the
amount in the event of the death of the holder(s).
The nominee has the right to receive the amount
only. The certificate will not be transferred
in his/her name nor he/she can sell or transfer
the certificate.
In case the nominee is a minor, the bondholder
has to indicate date of birth alongwith other
details.
Nomination can be made at the time of application
or subsequently. A nomination once made can also
be cancelled/substituted. Application in this
regard may be forwarded to the Registrar or IDBI.
A nomination stands cancelled upon the transfer
of bonds by the person nominating. A transferee
will be entitled to make a fresh nomination for
which request in writing shall be made to the
Registrar or IDBI.
The nomination facility is not available to the
person holding the bond as holder of office or
acting for the trust or acting in any other capacity
for any other person(s) with beneficial interest
in bonds. |
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| Issue
of duplicate bond certificate |
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In
case of defaced/damaged bond certificate(s)
Duplicate bond certificate(s) are issued in lieu
of defaced/ damaged bond certificates or lost/stolen
bond certificates.
The defaced/damaged bond certificates may be sent
with a request alongwith relevant information
as mentioned above, to enable us to issue duplicate
certificate(s). No letter of surety is required
where damaged bond certificate is sent for issue
of duplicate certificate.
In case of theft or loss
(other than postal loss) of certificate(s)
The loss of bond certificate(s) shall be reported
immediately to the Registrar/IDBI alongwith certificate
nos./folio no. and distinctive nos. to enable
us to stop transfer of such bonds.
A complaint shall have to be lodged with the local
police station about the loss of certificate(s)
and a copy of the FIR shall be obtained and furnished.
The request for issue of duplicate bond certificate(s)
shall be sent to Registrar/IDBI alongwith Letter
of Indemnity in the prescribed form duly stamped
and a Letter of Surety, if required.
Please note that the letter of surety is not required
to be furnished by the bondholders where aggregate
value of lost/stolen bond is less than Rs.50,000/-.
In case of postal loss
of certificate(s)
In case the bond certificate(s) have been lost
in postal transit or not received, duplicate bond
certificate(s) will be issued on receipt of Letter
of Indemnity and a Letter of Surety, if required
alongwith request letter.
Duplicate bond certificate(s) will be issued only
after necessary notification regarding loss/non-receipt
of the original bond certificate(s) is given in
the newspapers. |
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| Issue
of duplicate interest warrant(s) |
Interest warrants are despatched generally a week
ahead of their due date to the registered bondholders.
Bondholders who do not receive interest warrants
within reasonable period after due date shall
inform the fact of non-receipt of interest warrants
to the Registrar/IDBI quoting folio no., certificate
no., name and other relevant details such as type
of issue, name of scheme, and the period to which
the interest warrant pertains.
Where the warrants has been issued and posted,
but not returned undelivered or has been lost,
duplicate interest warrants will be issued only
after reconciling the Bank statement and investor
furnishing the indemnity and after it is found
that the said warrant has not been encashed. |
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| Revalidation
of interest warrants |
On
expiry of the validity period, the warrant(s)
may be sent to IDBI/Registrar for revalidation/issue
of demand draft. |
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| Correction
of mistakes in bond certificate(s)/warrant(s)
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Requests
for correction in bond certificates/interest warrants
duly signed by all the holders may be sent alongwith
the original document. |
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| Change
of address/bank details |
| Request
for change in address/bank details will be entertained
only if it is in writing and signed by first bondholder
indicating the folio number. |
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| Change
in the names of bondholders |
Change
in the names of Adult bondholder
Requests for change of names shall be made together
with original bond certificate alongwith a copy
of notification in Official Gazette or a newspaper
or an affidavit duly sworn. The fresh specimen
signature duly attested by a banker shall also
have to be submitted to IDBI/the Registrar.
Change in the status of
minor consequent to attend a majority
A minor who has acquired bonds through his guardian
on attaining majority may apply for registering
the bonds in his/her own name. The request in
this regard shall be made with the proof of minor
having attaining the majority alongwith original
bond certificate. The minor on attaining majority
shall have to submit a fresh specimen signature
duly attested by his/her guardian or banker to
the Registrar/IDBI.
Change of Guardian
Minor who has acquired the bonds through his guardian,
can apply for change of name of guardian. Such
request shall be made by the new guardian. If
the person who acted as guardian at the time of
acquisition of bonds is alive, his consent for
the change of guardian shall be produced. The
new guardian shall have to submit specimen signature
duly attested by his Banker or other competent
authority and proof in support of assertion of
person claiming to be natural guardian/legal guardian
or guardian appointed by Court to the Registrar/IDBI.
Change of name of minor
The guardian of minor person who has acquired
bonds in the name of his minor and wishes to record
change in the name of minor after naming ceremony
can apply for the change of name of minor by endorsing
the bond certificates and producing the proof
of change of name of minor.
Change in the name consequent
upon change in marital status.
For effecting the change of name consequent upon
marriage/divorce, etc., the original certificate
together with a copy of marriage certificate/decree
of divorce duly attested by competent authorities
(Please see Section 3.1) shall have to be forwarded
to the Registrar/IDBI.
Fresh specimen signature duly attested by a banker/notary/magistrate
shall also have to be submitted to the Registrar/IDBI.
Change in the name of
Companies
Companies desirous of changing the name in which
the bond certificate has been issued shall have
to furnish a certified copy of the fresh Certificate
of Incorporation issued by the Registrar of Companies
alongwith the original bond certificate. |
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| Split
and Consolidation |
The
marketable lot for IDBI bonds is:
1. Bondholders desirous of converting their holdings
into marketable lot, may forward the bond certificates
with written request duly signed by all the holders.
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| Redemption
of Bonds |
Different
types of bonds issued by IDBI from time to time
have different maturity period and procedure for
the same has been clearly spelt out in the bond
certificate. Bondholders are requested to go through
the same in detail and apply for redemption or
exercise put option within the time as indicated
in the bond certificate.
The bondholder must get his name registered with
IDBI if he decides to exercise early redemption
option. Further, if IDBI decides to exercise Call
Option, the redemption proceeds are given to the
registered bondholder.
The bond will be redeemed only on surrender of
the duly discharged bonds certificates by registered
bond holder(s). Investor may note that this is
necessary as the bonds are transferable by endorsement
and delivery and registration of transfer is not
compulsory.
While exercising Put Option or discharging the
bond certificate, the registered bondholder or
transferee has to affix revenue stamp of the value
of rupee one on the reverse of the bond and put
his/her signature on the revenue stamp. All holders/transferee(s)
have to sign the endorsement and write there "Please
pay the redemption value". |
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| Procedure
for pledge of Bonds |
IDBI Bonds can be pledged
as security for availing of loans. IDBI has made
arrangements with some of the commercial banks
to provide loans against the security of bonds.
Investor may approach them for loan. However,
granting of loans and terms and conditions are
at the discretion of the Bank granting the loan
and IDBI do not have any say in the matter.
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| Tax
deduction at source from interest payment
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Interest
on bonds is treated as interest on securities
for the purpose of income-tax.
Interest on bonds is subject to TDS at prevailing
rate where the interest on IDBI Bonds during any
financial year exceeds Rs.2,500/-. Present rates
of TDS for domestic companies is 20% (plus surcharge
@10% of the TDS), Non-Resident Indians 30% and
for individuals, trusts, societies, etc. - 10%
(plus surcharge @10% of the TDS).
Where the tax is deducted at source, a certificate
to that effect in form 16A is issued to investor.
In case same is not received by the investor,
he may write to Registrar/IDBI with full details.
Tax will not be deducted at source in case of
individual, 'person' (other than Company or a
firm) such as Trusts, Super annuation fund, Providend
fund and Gratuity fund who/which submits a declaration
in prescribed Form 15F in duplicate to Registrar
or IDBI regularly two months in advance of the
start of every financial year whenever payment
of interest becomes due stating that tax on estimated
total income of the individual investor for the
relevant year is NIL.
In case of entities other than mentioned above,
they are required to furnish a certificate in
Form 15AA issued by the Assessing Officer having
jurisdiction over them, authorising deduction
of tax at a rate lower than the prescribed rate/NIL
rate. On furnishing such certificate, lower or
no tax will be deducted on payment of interest
on bonds.
In case of Deep Discount Bonds, as clarified by
Central Board of Direct Taxes, difference between
the issue price and the redemption price of the
bond will be treated as interest income assessable
under IT Act in the year of redemption and tax
will be deducted at source on this interest. However,
in case of transfer of Deep Discount Bonds before
maturity, the difference between the issue price
and the sale consideration will be capital gain.
This position will hold good till the date of
redemption. |
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All
the correspondence relating to bonds may be addressed
to the Registrars to IDBI Bonds:
| Issue
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Registrar
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| Series
- I & II Flexibonds - 1,15,16,17,18
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Flexibonds - 2, 3, 4, 5 & 7 |
M/s.Karvy Consultants Ltd.,
Karvy House, 46, Avenue,
Road No.4, Street No.1,
Banjara Hills,
Hyderabad - 500034.
Tel: (040) 23319434
Fax: (040) 23311968.
E-mail: mailmanager@karvy.com
Web-site: www.karvy.com
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Flexibonds - 6,8,9,10,11,12,13,14
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M/s.Datamatics Financial Services Ltd.
Plot No.A-16 & A-17,
Part-B, Cross Lane,
MIDC, Marol,
Andheri (E),
Mumbai - 400093.
Tel: 022-28375519-24, 28345824
Fax: 022-8350217
E-mail: dfsl@bom5.vsnl.net.in
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Investors are, however, free
to write to IDBI in the matter.
While sending queries/grievances, please quote
the name of the issue/scheme, application no.,
folio no., certificate no., subject matter, etc.
Please give your full address including pin code
and telephone/fax no., if any.
The communication must be legible.
Valuable documents may be sent by registered post.
Please retain photo-copies of application, bond
certificates and postal registration slip/acknowledgement
etc. This would facilitate future queries.
Any change in the signature may be intimated with
fresh specimen signature duly attested by your
banker (to be signed by your Bank Branch official).
While reply is generally given within 10 days
from the date of receipt of grievance, matters
like transmissions/ transfers, etc. take about
1 month.
In the case of issue of duplicate bond certificates,
since the procedure involved is elaborate, it
takes some more time. However, they are issued
within 8 weeks from notification of loss in newspapers.
Sales and purchases of bonds may be done preferably
through the registered share broker of recognised
Stock Exchanges. |
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