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Bhavishya Nirman Bonds

An introduction to the Bhavishya Nirman Bonds issued by NABARD

Bhavishya Nirman Bonds are issued by the National Bank for Agriculture and Rural Development (NABARD). These bonds fall into

the category of long term, deep discount bonds. They are issued for 10 years, with zero interest rate. These bonds are issued

at a discount to the face value (Rs. 20,000), and are redeemed at their face value on maturity.

Since the Bhavishya Nirman Bonds are issued by NABARD, they are virtually risk free. Therefore, people looking for a long term, fixed interest rate, risk free option for investment should opt for these bonds.

 

Features

  1. Are available for investment only during a fixed period each year
  2. Have obtained highest safety rating from CARE and CRISIL
  3. To be listed on BSE
  4. Can be traded only in the dematerialized (demat) form
  5. Income to be treated as Capital Gains in the year of maturity
  6. No TDS
  7. Can be bought in the name of minors
  8. Minimum investment for trading: Rs. 4.8 Lakhs at market price

 

Features of Feb 2007 issue

  1. Tenure: 10 years
  2. Issue Price: Rs. 9,750
  3. Face Value: Rs. 20,000
  4. Implied Rate of Return (Annualized): 7.4%

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