Govt tax free bonds – Physical form or Demat form

POSTED BY Mustafizur Rahaman ON October 14, 2013 2:37 pm COMMENTS (2)

I had bought IRFC, REC & HUDCO bonds in the past, but in physical form as I did not have any DMAT a/c then. I have now a Dmat a/c now & am considering whether I should move all my bonds to Dmat form, so that it\’s all in a centralized place. But this would also bear some additional cost around 300-500 INR.

Could someone please advice whether it is good thing to do? Is there any merit/de-merit in holding the bond in physical/dematerialize form?

Thanks,

Rahaman

2 replies on this article “Govt tax free bonds – Physical form or Demat form”

  1. ashalanshu says:

    Dear Mustafizur, aptly answered by dear Vaibhav.

    Thanks

    Ashal

  2. Vaibhav Goyal says:

    Yes, go for conversion to Demat.
    The benefit of holding them in Demat form is that you’ll be able you to sell them in Secondary market. So you’ll have the option of exiting the investment before maturity, if you’re getting a good price or if you’re in need of funds.

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