Inflation-indexed bonds are here :: Business Line

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The Reserve Bank of India is set to issue its first tranche of inflation-indexed bonds on June 4, with 20 per cent reserved for retail investors. With a ten-year tenor, the bonds are a long-term, safe investment option for domestic investors. The principal value will be linked to the Wholesale Price Index (with a four-month lag). At maturity, bond holders will get back the original investment, plus gains due to inflation. The periodic interest payments will depend on the changing principal. However, RBI has clarified the bond will not have tax sops. Individuals can invest up to Rs 2 crore, with the minimum at Rs 10,000.

Non-agri futures trading to cost more

Trading in non-farm commodity futures is set to turn costlier. The commodity transaction tax is likely to be notified in the next month and sellers will have to pay 0.01 per cent of the traded value as tax. This applies for gold, silver, non-ferrous metals such as copper and energy products such as crude oil. C.P. Krishnan, Whole Time Director of Geojit Comtrade, says the new levy may deter gold traders, with the turnover already declining in recent weeks (see accompanying table).

Stocks on sale

With the June 3 compliance deadline for the 25 per cent public holding norm fast approaching, over 80 companies have to offload shares in the next two weeks. Sun TV Network, Muthoot Finance, Chettinad Cement, Omaxe, Wheels India and Essar Shipping are among the companies that have not met the norm. Going by recent instances, some of these offers may come at steep discounts to attract retail investors. In March some offers came at 18-20 per cent discount against market price.

Dividend bounty

The board of Coal India approved a final dividend of Rs 4.30 per equity share for 2012-13. The full-year dividend at Rs 14 per share (against Rs 10 in 2011-12) is the highest ever in the company’s history. Akzo Nobel too made investors happy with a total dividend of Rs 80 per share, including a special dividend of Rs 60. The face value of the company’s stock is Rs 10. Following Tuesday’s announcement, the stock hit a new high of Rs 1,195.

E-filing for income above Rs 5 lakh

For taxable income exceeding Rs 5 lakh, returns should now be filed electronically. Previously, e-filing was mandatory only for income exceeding Rs 10 lakh. The new rule applies from financial year 2012-13. Salaried employees should file tax returns for FY-13 by July 31.