FIXED INCOME


Raj Pradhan Raj Pradhan 25 November 2016
The government’s move to demonetise Rs1,000 and Rs500 currency notes, to curb black money from the system, will also lead to lowering of bank fixed deposit (FD) rates. Banks have been sending SMSes urging customers to visit their braches to deposit cash. The cash deposited by customers will...

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Raj Pradhan Raj Pradhan 11 November 2016
The Reserve Bank of India (RBI) had fixed the issue price of sovereign gold bonds (SGB) at Rs2,957/gram (gm) for the sixth tranche of subscription (from 24th October to 2nd November). It was touted as the lowest subscription price in the current financial year, i.e., 2016-17. To make the...

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RAJ PRADHAN RAJ PRADHAN 28 October 2016
Post-office Monthly Income Scheme (POMIS) gives you guaranteed return on your investment. Currently, it offers 7.80%pa (per annum) payable as monthly income. The maturity term of POMIS is five years. There is no tax deducted at source (TDS) on the interest for POMIS, but the interest income...

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Moneylife Digital Team 14 October 2016
Anumber of non-convertible debenture (NCD) issues have come up in the past few months. The last few issues included NCD issues of SREI Infrastructure Finance, Dewan Housing Finance Corporation (DHFL) and Indiabulls Housing Finance.    These issues have witnessed a lot of frenzy; some...

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Raj Pradhan Raj Pradhan 30 September 2016
Investment in Government Securities (G-Secs) for retail investor has, traditionally, been through the mutual fund (MF) route. With rate cuts by the Reserve Bank of India (RBI) for more than one year, MFs’ exposure to G-Secs has been on the rise. Investment through the MF route (growth option)...

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Raj Pradhan Raj Pradhan 16 September 2016
Several taxable bond issues will hit the market in absence of tax-free bonds. The NCD (non-convertible debenture) issue of Dewan Housing Finance Ltd opened on 29th August and closed in a day on 30th August. It offered interest rates of up to 9.25% for 84 months, 9.15% for 60 months and 9.10%...

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IANS 14 September 2016
Credit rating agency Moody's Investors Service on Wednesday said the State Bank of India's (SBI) issuance of additional tier 1 (AT1), Basel III compliance securities would set the pricing benchmark for other issuers.   Moody's said the SBI's issue price would also provide Indian banks...

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Saurabh Dugar 08 September 2016
The Reserve Bank of India (RBI), on 29 September 2015, vide circular RBI/2015-16/193 had issued guidelines allowing Indian companies, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue rupee-denominated bond (masala bonds) overseas. Consequently, RBI,...

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R Balakrishnan R Balakrishnan 06 September 2016
Credit rating is a much-misunderstood concept. It is also a much-abused concept. Normally, not many people care to know about rating. It’s only when ratings suddenly go wrong and there are defaults and downgrades, that there is a lot of outrage and the regulators and the public react sharply....

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Raj Pradhan Raj Pradhan 02 September 2016
Premature withdrawal penalty matters when you wish to close a fixed deposits (FD) before maturity. The reason for closing can be a better investment opportunity, like wanting to invest in a tax-free bonds issue. A bank FD offers high liquidity, but the penalty for premature withdrawal is...

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The Reserve Bank of India's (RBI) proposal to allow banks to raise additional tier-1 and -2 capital by issuing masala bonds would ease access to capital, global credit rating agencies Fitch Ratings and Moody's Investor Service said on Friday.   Masala bonds are rupee-denominated bonds...

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Raj Pradhan Raj Pradhan 19 August 2016
Some investors may be concerned about the safety of their money with the new entrants in the private banking space such as Bandhan Bank and RBL Bank (formerly Ratnakar Bank). Competitive intensity, and their urge to capture market share from the well-established banks, is motivating them to...

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In a bid to develop a strong corporate bond market in India, an expert group on Thursday suggested standardisation of corporate bond issuance, relaxing norms for allowing foreign investments, creation of a bond index and encouraging corporates to tap the market.   A report of the...

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Raj Pradhan Raj Pradhan 05 August 2016
The Reserve Bank of India (RBI) had fixed the issue price of sovereign gold bonds (SGB) at Rs3,119 per gram (gm) for the fourth tranche of subscription (from 18 July to 22 July 2016). It was the first offering in the current financial year. To make the scheme attractive, capital gains tax...

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Jason Monteiro Jason Monteiro 02 August 2016
Fixed maturity plans (FMPs) were a good product to buy in March 2013 when you could get double indexation benefit, if you held them for at least 13 months, especially in a situation of stable or falling interest rates. However, the Union Budget of FY14-15 made them unattractive. Now, you will...

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Edelweiss Housing Finance’s public issue of secured redeemable non-convertible debentures (NCDs) worth Rs500 crore opened on 8th July and it closed on 12th July, on over-subscription. The allotment is on a ‘first-come-first-served’ basis. It offers attractive interest rates of up to 10% for...

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Indian curry is quite a hit in the West. On a similar note, can global investors be tempted to try out Masala bonds? That is something the Indian Railway Finance Corp, which approved the raising of $1 billion through the issue of Masala bonds and other companies such as Indian Rail Finance...

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Debt mutual fund schemes are expected to perform well in periods of declining interest rates. Over the past year or so, the Reserve Bank of India (RBI) cut interest rates by 150 basis points (bps), to 6.50% as on 31 May 2016, from 8% at the beginning of January 2015. This should have been a...

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Public provident fund (PPF) has now become flexible. The government has allowed premature withdrawal after five years, subject to requirement of funds for treatment of serious ailment or life-threatening disease to the account-holder, spouse or dependent children. Supporting documents from...

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Reliance Jio Infocomm Limited (RJIL) on Thursday said its Rs2,000 crore Non-Convertible Debentures (NCDs) issue was oversubscribed with a total book size in excess of Rs3,500 crore.   The subsidiary of Reliance Industries Limited (RIL) on Thursday issued NCDs of five year tenure...

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