| Silent Features |
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The Bonds may be held by
1. An individual, not being a non-resident India
a. in his or her individual capacity or
b. in individual capacity on joint basis or
c.in individual capacity on any one or survivor basis or
d. on behalf of minor as father/mother/legal guardian
Non Resident Indians are NOT eligible to subscribe.
2. HUF
3. Charitable institutions and Universities.
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| Tenure |
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| 6 years. |
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| Interest rate |
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| 8 % p.a. payable half yearly on 1st February and August. |
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| Option for premature redemption |
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| Not available. |
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| Receiving offices |
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| 62 Branches of Indian Overseas Bank given in the enclosed list are authorized to maintain the above bond Accounts. |
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| Tax concession |
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| Taxable but tax is deductible at source effective from 01-06-2007 if the amount of interest exceeds Rs10000/- |
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| Form of Holding |
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| Bond Ledger Account (BLA) only with the Agencies. |
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| Limit of investment |
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| No ceiling on investment. |
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| Issue price |
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| At par. |
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| Option |
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| Cumulative and Non-cumulative |
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| Advances |
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8% Savings Taxable bond 2003 shall be eligible as collateral for loans from scheduled banks and the loan holders of the said bonds shall be entitled to create pledge or hypothecation or lien in favour of scheduled banks;No third party loan permitted.
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| Nomination facility |
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Available to sole individual holder.
NRIs can also be nominated. |
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| Payment of interest |
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i. Half yearly through Bankers Cheque / DD / ECS-Non cumulative
ii. In case of cumulative option, interest is paid along with principal at the time of redemption. |
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| Brokerage |
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| Available at Re.1/-per Rs.100 for BLA with agency banks |
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| Transferability |
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| Non-transferable except to nominee in case of death of the holder. |
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| Post Maturity interest |
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| Not payable. |
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| Tradeability |
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| Not tradeable. |
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