National Highways Authority Of India Or Rural Electrification Corporation Limited Bon

Hi buddy I heard Rural Electrification Corporation Limited (REC) & National Highways Authority of India (NHAI) are permitted to issue capital gains bonds under Section 54 EC, is this statement true , if yes then plz let me know about the same ?

[shikha]

Rural Electrification Corporation Limited (REC) is a public Infrastructure Finance Company in India s power sector.

Yes Rural Electrification Corporation Limited (REC) & National Highways Authority of India (NHAI) are permitted to issue capital gains bonds under Section 54 EC:

Features of Section 54 EC bonds are:

AAA rated

Interest is taxable although no TDS is deducted

Lock-in of 3 years and non- transferable

Minimum investment-1 Bond amounting to 10,000/- and maximum investment-500 Bonds amounting to 50 lakhs in a financial year

Rate of Interest 5.25% p.a. payable annually

Bonds can be held in Demat /Physical Form

Facility of Payment of Interest and Redemption through NECS

The Bonds will automatically redeem after expiry of three years

REC profile:

Type State-owned enterprise

Traded as BSE: 532955

NSE: RECLTD

Founded New Delhi, Delhi, India (25 July 1969; 48 years ago)

Headquarters Core-4, SCOPE Complex, 7, Lodhi Road, New Delhi, Delhi, India

Area served India

Key people P.V. Ramesh Babu (Chairman & MD)


Revenue 105.09 billion (USS1.6 billion) (2011–12)

Operating income 75.91 billion (USS1.2 billion) (2011–12)

Profit 28.17 billion (USS440 million) (2011–12)

Total assets 1,087.29 billion (USS17 billion) (2011–12)

Total equity 147.45 billion (USS2.3 billion) (2011–12)

Owner Government of India

Number of employees 600 (2011 12)

Subsidiaries REC Transmission Projects Company Limited (RECTPCL)

REC Power Distribution Company Limited (RECPDCL)