Purpose : Safe Returns
It is a market where institutional investors such as Banks, Financial Institutions, Mutual Funds, Insurers, Primary Dealers, Corporates, Foreign Portfolio Investors all participate in the trading of Government Securities and bonds.
Why should one invest in fixed income securities?
Fixed Income securities offer a predictable stream of payments by way of interest and repayment of principal at the maturity of the instrument. The debt securities are issued by the eligible entities against the moneys borrowed by them from the investors in these instruments.
- The investors benefit by investing in fixed income securities as they preserve and increase their invested capital and also ensure the receipt of regular interest income.
- The investors can even neutralize the default risk on their investments by investing in Govt. securities, which are normally referred to as risk-free investments due to the sovereign guarantee on these instruments.
- The prices of Debt securities display a lower average volatility as compared to the prices of other financial securities and ensure the greater safety of accompanying investments.
- Debt securities enable wide-based and efficient portfolio diversification and thus assist in portfolio risk-mitigation.
- Corporate Debt/ Perpetual Bonds
The Indian Primary market in Corporate Debt is basically a private placement market with most of the corporate bond issues being privately placed among the wholesale investors i.e. the Banks, Financial Institutions, Mutual Funds, Large Corporates & other large investors.
The Secondary Market for Corporate Debt can be accessed through the electronic order-matching platform offered by the Exchanges. BSE offers trading in Corporate Debt Securities through the automatic BOLT system of the Exchange. The Debt Instruments issued by Development Financial Institutions, Public Sector Units and the debentures and other debt securities issued by public limited companies are listed in the ‘F Group’ at BSE.
Sr. No. Security Interest Rate YTC/YTP Rating Qtm 1 10.75% DHFL Perpetual Bond 10.75% 10.11% AA 10 lac multiples 2 10.40% Vijay Perpetual Bond 10.40% 9.85% AA- 10 lac multiples 3 10.90% Punjab Sindh Bank Perpetual Bond 10.90% 10.94% A+ 10 lac multiples 4 10.95% IDBI Perpetual Bond 10.95% 10.90% A+ 10 lac multiples 5 11.09% IDBI Perpetual Bond 11.09% 10.95% A+ 10 lac multiples 6 11.70 % UCO Bank Perpetual Bond 11.70% 11.25% A- 10 lac multiples 7 11.60% Bank of Maharashtra Perpetual Bonds 11.60% 11.28% A- 10 lac multiples 8 11.95% United Bank of India Perpetual Bonds 11.95% 11.40% A- 10 lac multiples 9 12% United Bank of India Perpetual Bonds 12.00% 11.97% A- 10 lac multiples
- Corporate Fixed Deposits
Corporate Fixed Deposits are one of the money raising tools for Companies. Through these, Companies raise money from the public and offer a fixed rate of interest for different tenures. We Offer AAA+/AAA rated companies fixed deposit with a range of 12 months to 20 years and periodic interest payment option (Monthly, Quarterly, Semi Annually, Annually) and Cumulative.
Some of the Corporate Fixed Deposits are as Follows:
- Bajaj Finance Ltd.
- Dewan Housing Finance Ltd. (DHFL)
- Housing Development Finance Corporation Ltd. (HDFC)
- ICICI Home Finance
- LIC Housing Finance
- Mahindra Finance Ltd
- Shriram Transport Finance Ltd
- Non-Convertible Debentures (NCDs) & Bonds
Nonconvertible debentures are unsecured bonds that cannot be converted to company equity or stock. Nonconvertible debentures usually have higher interest rates than convertible debentures.
Bonds (Tax Free and Taxable)
Bonds are debt securities issued by corporations and governments. Some of the bonds are from NHAi, HUDCO, REC etc.
Capital Gain Bonds
As per provisions of Income Tax Act, 1961, any long term capital gains arising from transfer of any capital asset would be exempt from tax under section 54EC of the Act if: The entire capital gain realized is invested within 6 months of the date of transfer in eligible bonds. Such investment is held for 3 years.
Company Name NSE Series Last Price Change (%) Open High Low Face Value ECL Finance N3 1,048.00 -0.95% 1,048.00 1,055.50 1,040.00 1000 Housing and Urban Development Corporation N4 1,067.00 -0.02% 1,067.01 1,067.01 1,067.00 1000 Housing and Urban Development Corporation N3 1,106.00 -0.13% 1,106.00 1,107.95 1,105.05 1000 Housing and Urban Development Corporation N2 1,160.00 -0.85% 1,157.20 1,160.00 1,156.02 1000 IFCI NJ 1,020.00 0% 1,020.00 1,020.00 1,020.00 1000 IFCI NL 1,020.00 -0.10% 1,020.05 1,021.00 1,020.00 1000 India Infoline Finance NA 1,060.00 0.38% 1,062.50 1,062.50 1,058.00 1000 India Infoline Finance N5 1,057.00 0% 1,054.00 1,058.00 1,054.00 1000 India Infoline Housing Finance N1 1,048.06 -0.04% 1,047.95 1,050.20 1,046.00 1000 Indian Railway Finance Corporation N9 1,166.04 -0.76% 1,177.00 1,177.00 1,165.00 1000