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| Transfer of bond |
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| The bonds in the form of promissory notes, being negotiable instruments are transferable by endorsement and delivery by the transferor. The transferor has to affix his/her signature at the place indicated on the reverse side of the bond certificate and the transferee has also to write his name and affix his/her signature at the appropriate place. The vernacular endorsement must be translated into English immediately below the name. In case of thumb impression, it is required to be attested by the authorised person (Magistrate, notary public, gazetted officer, managers of nationalised banks or officer of IDBI).
Please ensure that the buyers and sellers have signed at appropriate places in the certificate and the buyer's address is given in full including pin code and telephone and fax number, if any in a separate letter. Please ensure that the transferor has put his signature in full and that all the holder(s) of the bond certificate have signed the endorsement. If the bond certificate is signed by the constituted Attorney of transferor, please ensure that the registration number of the Power of Attorney registered with IDBI/Registrar is mentioned on the reverse of the certificate. Otherwise, the transferor may be requested to have the Power of Attorney immediately registered with the Registrar/IDBI before approaching for transfer. In case a transferee wishes to have the bond certificate signed by his constituted Attorney, it will be necessary to attach the necessary Power of Attorney duly notarised. Please note to obtain a registration number from IDBI. In case the transferee is acting through his constituted Attorney, and his Power of Attorney has already been registered with IDBI, please quote the registration number at the appropriate place. In case the purchaser is already having an existing folio number in the same scheme, please quote the same to enable us to register new bonds in the same folio number. Payment of interest on bonds is made to registered bondholders only. In case of transfer, the transferee is advised to register his name with IDBI. Investors are advised to register their transfer before the record date i.e. 1 month prior to date on which interest is due or before mailing post dated warrants for monthly income scheme. |
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| Transmission of bonds certificate arises in case of death of the registered bondholder. A copy of the death certificate of the deceased registered bondholder duly attested by authorised person (magistrate, notary public, gazetted officer, managers of nationalised banks or officials of IDBI) may please be sent alongwith the bond certificate. If the bonds are held in joint names, only the deceased bondholder's name will be deleted.
In case a bond is held by two or more holders, the bond will be transmitted to the survivor or survivors and on the death of the last survivor, to his executors, administrators or any person who is the holder of a succession certificate in respect of such bond. In case of single bondholder, the bonds will be transmitted in favour of those persons who are executors or administrators of a deceased registered bondholder as per the Will executed by him. In case the deceased bondholder has not left any Will, transmission of the bonds will be effected to the heirs of the deceased bondholder only on production of succession certificate or letter of administration. |
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| Transposition can be resorted to change the order of holders of the bonds inter se i.e. the first holder may become second holder or third holder and vice versa. The same procedure as in the case of transfer should be followed. Bondholders will sign as transferor in the order mentioned in bond certificate (original order) and will mention their names and signature as transferee in revised order. All requests for transposition should be sent to the Registrar alongwith the duly filled in endorsement on the reverse of the bond. | ||||||||||||
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| When a certificate is in the name of single person or two persons and he/she/they desire/s to add one or more name(s) (allowed upto three) as joint holders of the bond certificate, he/she/they is/are advised to follow the procedure applicable to the transfer of bond certificate (i.e. the original holder(s) has/have to sign on reverse side of the bond certificate as transferor(s) and then the original holder(s) and additional holder(s) has/have to write their name(s) and affix signature(s) as transferee at appropriate places). In case the name to be added is that of minor, the minor's name to be written first, below which the guardian's name has to be written under the same column. Signature(s) is/are to be put as explained above. The certificate may be forwarded to the Registrar/IDBI for registration. | ||||||||||||
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| IDBI bonds have facility for nomination. The sole bondholder or all the holders jointly or the surviving holder or holders may nominate one or more persons not exceeding four, including a minor, who shall in the event of death of sole holder or all the joint holders, be entitled to the amounts payable in respect of bonds. Where the nomination is in the name of more than one person, the nominee first named shall alone have the right to receive the amount in the event of the death of the holder(s). The nominee has the right to receive the amount only. The certificate will not be transferred in his/her name nor he/she can sell or transfer the certificate.
In case the nominee is a minor, the bondholder has to indicate date of birth alongwith other details. Nomination can be made at the time of application or subsequently. A nomination once made can also be cancelled/substituted. Application in this regard may be forwarded to the Registrar or IDBI. A nomination stands cancelled upon the transfer of bonds by the person nominating. A transferee will be entitled to make a fresh nomination for which request in writing shall be made to the Registrar or IDBI. The nomination facility is not available to the person holding the bond as holder of office or acting for the trust or acting in any other capacity for any other person(s) with beneficial interest in bonds. |
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In
case of defaced/damaged bond certificate(s) Duplicate bond certificate(s) are issued in lieu of defaced/ damaged bond certificates or lost/stolen bond certificates. The defaced/damaged bond certificates may be sent with a request alongwith relevant information as mentioned above, to enable us to issue duplicate certificate(s). No letter of surety is required where damaged bond certificate is sent for issue of duplicate certificate. In case of theft or loss (other than postal loss) of certificate(s) The loss of bond certificate(s) shall be reported immediately to the Registrar/IDBI alongwith certificate nos./folio no. and distinctive nos. to enable us to stop transfer of such bonds. A complaint shall have to be lodged with the local police station about the loss of certificate(s) and a copy of the FIR shall be obtained and furnished. The request for issue of duplicate bond certificate(s) shall be sent to Registrar/IDBI alongwith Letter of Indemnity in the prescribed form duly stamped and a Letter of Surety, if required. Please note that the letter of surety is not required to be furnished by the bondholders where aggregate value of lost/stolen bond is less than Rs.50,000/-. In case of postal loss of certificate(s) In case the bond certificate(s) have been lost in postal transit or not received, duplicate bond certificate(s) will be issued on receipt of Letter of Indemnity and a Letter of Surety, if required alongwith request letter. Duplicate bond certificate(s) will be issued only after necessary notification regarding loss/non-receipt of the original bond certificate(s) is given in the newspapers. |
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Interest warrants are despatched generally a week
ahead of their due date to the registered bondholders.
Bondholders who do not receive interest warrants
within reasonable period after due date shall
inform the fact of non-receipt of interest warrants
to the Registrar/IDBI quoting folio no., certificate
no., name and other relevant details such as type
of issue, name of scheme, and the period to which
the interest warrant pertains.
Where the warrants has been issued and posted, but not returned undelivered or has been lost, duplicate interest warrants will be issued only after reconciling the Bank statement and investor furnishing the indemnity and after it is found that the said warrant has not been encashed. Revalidation of interest warrants On expiry of the validity period, the warrant(s) may be sent to IDBI/Registrar for revalidation/issue of demand draft. Correction of mistakes in bond certificate(s)/warrant(s) Requests for correction in bond certificates/interest warrants duly signed by all the holders may be sent alongwith the original document. |
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| Request for change in address/bank details will be entertained only if it is in writing and signed by first bondholder indicating the folio number. | ||||||||||||
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| Change in the names of Adult bondholder
Requests for change of names shall be made together with original bond certificate alongwith a copy of notification in Official Gazette or a newspaper or an affidavit duly sworn. The fresh specimen signature duly attested by a banker shall also have to be submitted to IDBI/the Registrar. Change in the status of minor consequent to attend a majority A minor who has acquired bonds through his guardian on attaining majority may apply for registering the bonds in his/her own name. The request in this regard shall be made with the proof of minor having attaining the majority alongwith original bond certificate. The minor on attaining majority shall have to submit a fresh specimen signature duly attested by his/her guardian or banker to the Registrar/IDBI. Change of Guardian Minor who has acquired the bonds through his guardian, can apply for change of name of guardian. Such request shall be made by the new guardian. If the person who acted as guardian at the time of acquisition of bonds is alive, his consent for the change of guardian shall be produced. The new guardian shall have to submit specimen signature duly attested by his Banker or other competent authority and proof in support of assertion of person claiming to be natural guardian/legal guardian or guardian appointed by Court to the Registrar/IDBI. Change of name of minor The guardian of minor person who has acquired bonds in the name of his minor and wishes to record change in the name of minor after naming ceremony can apply for the change of name of minor by endorsing the bond certificates and producing the proof of change of name of minor. Change in the name consequent upon change in marital status. For effecting the change of name consequent upon marriage/divorce, etc., the original certificate together with a copy of marriage certificate/decree of divorce duly attested by competent authorities (Please see Section 3.1) shall have to be forwarded to the Registrar/IDBI. Fresh specimen signature duly attested by a banker/notary/magistrate shall also have to be submitted to the Registrar/IDBI. Change in the name of Companies Companies desirous of changing the name in which the bond certificate has been issued shall have to furnish a certified copy of the fresh Certificate of Incorporation issued by the Registrar of Companies alongwith the original bond certificate. |
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| The
marketable lot for IDBI bonds is: 1. Bondholders desirous of converting their holdings into marketable lot, may forward the bond certificates with written request duly signed by all the holders. |
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| Different
types of bonds issued by IDBI from time to time
have different maturity period and procedure for
the same has been clearly spelt out in the bond
certificate. Bondholders are requested to go through
the same in detail and apply for redemption or
exercise put option within the time as indicated
in the bond certificate. The bondholder must get his name registered with IDBI if he decides to exercise early redemption option. Further, if IDBI decides to exercise Call Option, the redemption proceeds are given to the registered bondholder. The bond will be redeemed only on surrender of the duly discharged bonds certificates by registered bond holder(s). Investor may note that this is necessary as the bonds are transferable by endorsement and delivery and registration of transfer is not compulsory. While exercising Put Option or discharging the bond certificate, the registered bondholder or transferee has to affix revenue stamp of the value of rupee one on the reverse of the bond and put his/her signature on the revenue stamp. All holders/transferee(s) have to sign the endorsement and write there "Please pay the redemption value". |
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| IDBI Bonds can be pledged as security for availing of loans. IDBI has made arrangements with some of the commercial banks to provide loans against the security of bonds. Investor may approach them for loan. However, granting of loans and terms and conditions are at the discretion of the Bank granting the loan and IDBI do not have any say in the matter. | ||||||||||||
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Interest
on bonds is treated as interest on securities
for the purpose of income-tax. Interest on bonds is subject to TDS at prevailing rate where the interest on IDBI Bonds during any financial year exceeds Rs.2,500/-. Present rates of TDS for domestic companies is 20% (plus surcharge @10% of the TDS), Non-Resident Indians 30% and for individuals, trusts, societies, etc. - 10% (plus surcharge @10% of the TDS). Where the tax is deducted at source, a certificate to that effect in form 16A is issued to investor. In case same is not received by the investor, he may write to Registrar/IDBI with full details. Tax will not be deducted at source in case of individual, 'person' (other than Company or a firm) such as Trusts, Super annuation fund, Providend fund and Gratuity fund who/which submits a declaration in prescribed Form 15F in duplicate to Registrar or IDBI regularly two months in advance of the start of every financial year whenever payment of interest becomes due stating that tax on estimated total income of the individual investor for the relevant year is NIL. In case of entities other than mentioned above, they are required to furnish a certificate in Form 15AA issued by the Assessing Officer having jurisdiction over them, authorising deduction of tax at a rate lower than the prescribed rate/NIL rate. On furnishing such certificate, lower or no tax will be deducted on payment of interest on bonds. In case of Deep Discount Bonds, as clarified by Central Board of Direct Taxes, difference between the issue price and the redemption price of the bond will be treated as interest income assessable under IT Act in the year of redemption and tax will be deducted at source on this interest. However, in case of transfer of Deep Discount Bonds before maturity, the difference between the issue price and the sale consideration will be capital gain. This position will hold good till the date of redemption. |
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All
the correspondence relating to bonds may be addressed
to the Registrars to IDBI Bonds:
Investors are, however, free to write to IDBI in the matter. While sending queries/grievances, please quote the name of the issue/scheme, application no., folio no., certificate no., subject matter, etc. Please give your full address including pin code and telephone/fax no., if any. The communication must be legible. Valuable documents may be sent by registered post. Please retain photo-copies of application, bond certificates and postal registration slip/acknowledgement etc. This would facilitate future queries. Any change in the signature may be intimated with fresh specimen signature duly attested by your banker (to be signed by your Bank Branch official). While reply is generally given within 10 days from the date of receipt of grievance, matters like transmissions/ transfers, etc. take about 1 month. In the case of issue of duplicate bond certificates, since the procedure involved is elaborate, it takes some more time. However, they are issued within 8 weeks from notification of loss in newspapers. Sales and purchases of bonds may be done preferably through the registered share broker of recognised Stock Exchanges. |
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