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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
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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)
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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 |
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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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)
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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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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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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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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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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:
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Registrar
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Deep Discount Bond Series - I & II Flexibonds
- 1 |
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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) 3319434
Fax: (040) 3311968.
E-mail: mailmanager@karvy.com
Web-site: www.karvy.com
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Flexibonds - 6,8,9,10 |
M/s.Datamatics Financial Services Ltd.
Plot No.A-16 & A-17,
Part-B, Cross Lane,
MIDC, Marol,
Andheri (E),
Mumbai - 400093.
Tel: 022-8375519-24, 8345824
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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