It could be issued to any of the following category:
i. An individual, not being a Non-Resident Indian -
(a) in his or her individual capacity
(b) in individual capacity on joint basis
(c) in individual capacity on anyone or survivor basis
(d) on behalf of a minor as father/mother/legal guardian
ii. Hindu Undivided Family
iii. Charitable Institution' to mean a Company registered under Section 25 of the Indian Companies Act 1956 .
iv. An institution which has obtained a Certificate of Registration as a charitable institution in accordance with law a in force [OR]
v. Any institution which has obtained a certificate from Income Tax Authority for the purposes of Section 80G of the Income Tax Act, 1961.
vi. "University" means a university established or incorporated by a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a university for the purposes of that Act.
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APPLICATION PROCESS
i. Applications for the Bonds may be made in Form ‘A’ (Annex 2) or in any other form as near as thereto stating clearly the amount and the full name and address of the applicant.
ii. Applications should be accompanied by the necessary payment in the form of cash/drafts/cheques as indicated in paragraph 6 above.
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INTEREST ON BONDS
Applications for the Bonds in the form of Bond Ledger Account will be received at:
i. The bond will be issued in cumulative and non-cumulative form, at the option of the investor.
ii. The Bond will bear interest at the rate of 8% per annum. Interest on non-cumulative bonds will be payable at half-yearly intervals from the date of issue in terms of paragraph 7 above. Interest on cumulative bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal. In the latter case, the maturity value of the Bonds shall be Rs.1601/- (being principal and interest) for every Rs.1,000/-(Nominal). Interest to the holders opting for non-cumulative Bonds will be paid from date of issue in terms of paragraph 7 above upto 31st July/31st January, as the case may be and thereafter at half-yearly for period ending 31st July/31st January on 1st August and 1st February. Interest on Bond in the form of “Bond Ledger Account” will be paid, by cheque/warrant or through ECS by credit to bank account of the holder as per the option exercised by the investor/holder.
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NOMINATIONS
A sole holder or a sole surviving holder of a Bond, being an individual, may nominate in form B (Annex – 4) or as near thereto as may be, one or more persons who shall be entitled to the Bond and the payment thereon in the event of his/her death.
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REPAYMENTS
The Bonds shall be repayable on the expiry of 6 (Six) years from the date of issue. No interest would accrue after the maturity of the Bond
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RECEIVING OFFICES
Applications for the Bonds in the form of Bond Ledger Account will be received at:
i. Authorised Branches of State Bank of
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