Tax-Free Infra Bonds to Provide Lower Returns
According to an NHAI official, the Finance Ministry had some doubts regarding 
10,000 crore bonds issued by NHAI. The official assured the Ministry that all norms were adhered to during the issue. The official quoted, "If the government thinks that the norms should be tightened , we are all for it."
North Block wishes to fortify the whole process by implementing a new set of rules. According to sources, institutional investors and High Networth Individuals (HNIs), who have invested in bonds, can expect further reduction in interest rates. Currently, the rate of interest for bonds is not permitted to be below 50 basis points of the yield obtained on government securities with the same maturity period during the last day of the previous month. This particular clause is all set to be revamped, though the new formula has not been thought of.
