About 1992 bonds.

This query is : Resolved

Puran Chand (Querist)
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08 July 2012 Step-I: I sent a message to IDBI

Respected Sir/Madam,
I Puran Chand S/o Sh. Nasib Chand, Residing of Village Surn , P.O Dalsar Teh Ram Nagar , Distt. Udhampur, Jammu and kashmir
1.Under This Address My Father Sh. Nasib Chand Purchased a DDB Series I Certificate No. 01270690, I want to Know Status of this Deep Discount Bond.
2. From the very long time we are not received any letter regarding this.
3. I Requested to you, Please send us a Confirmation Letter On Our New Address:-

STEP-II: They Reply to me

these 1992 bonds were called back by idbi on 31/03/2002.

therefore please advise the customer to submit the following documents directly to IDBI Head office, Mumbai (since Karvy has been appointed as new registrar)

following documents are required

1. form 15g
2. copy of pan card of 1st holder
3. a forwarding letter specifying 1st holders present address and bank
detail
4. signature of 1st holder has to be attested

on receipt of the same, we will redeem the bond and release the payment.
appx amount per bond Rs 17000/-

will get Rs 12000/- (redemption value as on 31/03/2002) along with
additonal interest @3.50% per annum from the date of call option to till the
date of payment.

Step-III: In short i want to know through CAclubindia expert, i have a certificate of these bond, in which Redeemable amount as on 31 March, 2017 is Rs.100000/-, am i get that (Rs.100000) amount? or give good suggestion.

Ashwin Sharma

Ashwin Sharma (Expert)
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06 August 2012 Dear Puran chand
We cannot get Rs 100000 as this is the redemption amt for 2017. In deep discount bonds the issuer has make himself eligible for the call option to redeem the bonds. DDB are issued at a discount to face value and full amount of face value is payable on maturity. Here you have to verify the terms of issue. eg. if call option is exercised then how the redemption amt would be arrived at .

In this case u are eligible for the redemtion value as on date of exercise of call option by the issuer wch is mentioned as Rs 12000 in this case.