FAQs on NHAI Tax Free Bonds

FAQs on 

Download NHAI Tax Free Bonds Application Forms

Is a separate form for NRI?

There is no separate form for NRIs, the form for residents and NRIs are same.

6. Documents required along with NRI application?

Application form in original cheque from respective bank account-NRE/NRO Notarized copy of POA if Application under POA.

7. Can one apply in joint names?

Yes, Applications may be made in single or joint names (not exceeding three). In the case of joint Applications, all refunds/ interests/ redemption amounts will be made out in favour of the first Applicant. All communications will be addressed to the first named Applicant whose name appears in the Application Form at the address mentioned therein. Names in the Application Form should be identical to those appearing in the account details in the Depositories. In case of joint holders, the names should necessarily be in the same sequence as they appear in the account details in the Depositories.

8. Can NRI apply by doing the direct transfer of funds to escrow account?

No, not allowed NOTE: Only cheque from respective NRE/NRO account maintained with an RBI authorised dealer or a RBI authorised bank in India will be acceptable.

9. Can cheque be signed by a person holding POA?

Cheque may be signed by the POA holder as long as the applicant`s bank clears the Cheque

10. Documentary requirement in case of application made under power of attorney

Notarized copy of POA must be attached with the original application and cheque.

11. Who will get the interest in case of joint application?

In case of joint application, interest will be accounted to the first holder only, and will be credited to the bank account which is linked to demat account.

12. Is there TDS on the interest on allotment of bonds?

There will be no deduction of tax at source from the interest on allotment of bonds

13. Are these bonds listed any where?

Yes. These bonds are listed on the F Group and Capital Market Segment at BSE Limited (BSE) and National Stock Exchange of India Limited (NSE)  respectively. BSE shall be the designated Stock Exchange.

14. Will the scanned copy of form be acceptable?

NO. Scanned copy of form will not be acceptable.

15. Does this bond carry buyback options?

No. Neither “Put Option” shall be available to the Bondholder(s), nor would “Call Option” be available to the Company to redeem the Bonds prior to maturity

16. What is the interest on application money on such bonds prior to the date on allotment?

In case of allotment

The interest on application money is the respective coupon rate (subject to deduction of tax at source, as applicable), will be paid to the eligible investors from the date of realization of subscription or 3 days from the date of banking application money (duly acknowledge by banker to the issue) whichever is later, money up to one date prior to the Deemed Date of Allotment.

In case of refund of application Money.

Interest on refund amount on application money will be 4% p.a. date of realization of subscription money up to one date prior to the rejection.