NHAI LAUNCHES TAX FREE BONDS

The National Highways Authority of India (NHAI) has launched tax free bonds to raise upto Rs 4,000 crore. The three year bond, priced at Rs 10,000 each, carries a coupon rate of 6.25% per annum and will qualify for income -tax exemption under Section 54 EC of the Income-Tax Act, 1961. The subscription for bonds which opened on May 11, 2009 would be closed on March 31, 2010. The minimum application for the non- transferable bonds has been fixed at Five bonds (Rs 50,000) and maximum at 500 bonds (Rs 50 Lakh)