The ceiling coupon rate for AA issuers shall be the reference G-Sec Rate, less basis points in case of Retail Individual Investors (RII); and reference G-Sec less 100 basis points in case of other investors segment , like Qualified Institutional Buyers (QIBs), Corporate and High Net Worth Individuals (HNIs);

In case the rating of the issuers entity is above AA , a reduction of 15 basis points shall be made. These ceiling rates shall apply for annual payment of interest and in case the schedule of interest payments is altered to semi-annual, the rates shall be reduced by 15 basis points;

Interest Rate on transfer of Bonds: The higher rate of interest, applicable to retail investors, shall not be available in case the bonds are transferred, except in the case of transfer to legal heir in the event of death of the original investor.

Tax-free bonds out in 2014

Some of the tax free bonds issued in 2014 that have rapidly shooted up are 892PFC33 with coupon rate of 8.92 percent and yield to maturity period of 7.24 percent, NHB-N6with coupon rate of 9.01 percent and yield to maturity period of 7.27 percent, 901HUDCO34 with coupon rate of 9.01 and yield to maturity period of 7.36 percent, 891IIFCL34 with coupon rate of 8.91 percent and yield to maturity of 7.30 percent and NHAI-N6 with coupon rate of 8.75 and yield of maturity up to 7.30.