Taxfree & Taxable bonds Retail NCD Reckoner by HDFC Securities

Notes:

• For the purpose of categorization of credit rating, the lowest of the ratings issued by CRISIL, ICRA, CARE or any other credit rating are considered. The Credit rating is updated by us on half yearly basis and used for categorization accordingly.

• ** – In Tax Free Bonds, to avail (or retain) the 25bps additional in the coupon rate, Investors should be aware that the total investment in the aggregate face value of Bonds held by the Bondholders in all the Series of Bonds, allotted under the relevant Tranche Issue shall be clubbed and taken together and that should be up to Rs. 10 Lakhs. This can be explained in the following way. In the Year 2013-14, the issuers such as IRFC, HUDCO, IIFCL, etc. came out with more than one tranches offering 10 Years, 15 Years or 20 Years maturing bonds. In any
Tranche, to avail the additional 25bps in the coupon rate by retailers, the investment in any series or all the series of bonds (usually 3 series like 10 Years, 15 Years or 20 Years) should not be more than Rs. 10 lakhs. That means that the investor can hold a maximum of Rs. 10 Lakhs across all series of Bonds in one tranche/issue if he wants to avail of the benefit of extra 25 bps interest. If the investment in any series or all the series of one issue or tranche exceeds Rs. 10 lakhs, then the investor will lose out the benefit of additional 25 bps in the coupon rate. The coupon rates mentioned against the relevant Series marked “Individual” includes the extra interest rates. In case on the record date, the holding of the investor exceeds Rs.10 lakhs, then he will get a lower interest rate (typically by between 25 to 30 bps)

• YTM is yield to maturity – Annualized yield that would be realized on a bond if the bond is held until the maturity date. Yield to call (YTC) is the annualized rate of return that an investor would earn if he bought a callable bond at its current market price and held until the call is first exercisable by the issuer. The YTM data shown above for tax-free bonds are for retail investors who wish to hold investment in respective tax-free bonds upto the face value worth of Rs. 10 lakh.

• Latest record date is as per notice announced by issuers on NSE & BSE website. Last traded date means date of last trade (not beyond the previous month). Further freak trades are not considered for YTM calculations. While shortlisting the top picks, enough weightage is given to frequency of trade and average volumes.

• These quotes are derived from retail exchanges basis the liquidity and YTM as of Dec 16, 2022 and these quotes are meant for execution of retail transactions. Further, these are indicative in nature and not to be constituted as recommendation/advice. For the execution purpose, reach out to respective HSL RM/dealers.

• Bond quotes listed above serve as a sample and are an indicator of the prevailing yields. The actual availability could be more exhaustive and have many more papers. Yields on the papers will vary depending on the day/time of the transaction.