To Buy Infra Bonds in DEMAT form

POSTED BY Parag Shah ON October 20, 2011 10:45 am COMMENTS (4)

Hi to all,

I have a Trading Account and a DEMAT account (CDSL) With “Sher Khan” Brokerage House. For Tax Saving I will plan to buy IFCI Infra Bonds from KARVY. And I want to buy these bonds on DEMAT form.

Now my question is

1) If I buy Infra bonds in DEMAT form then is it necessary to inform my brokerage house or is it
independent activity along with CDSL?
2) Is my brokerage house will take some charges for that?
3) And after maturity how I will redeem these bonds? Through Booker or is it automatically transfer
in my bank account?

I know these are basic questions but I am a beginner in investing.
Thanks

4 replies on this article “To Buy Infra Bonds in DEMAT form”

  1. Priya Shah says:
    October 20, 2011 at 5:03 pm

    Thanks Abhishek for quick replay and good advice.

    Reply
  2. Priya Shah says:
    October 20, 2011 at 12:17 pm

    Thanks Abhishek for quick replay and good advice.

    Plz can u explain me If I purchase in physical format then how I will redeem these bonds after lock period.

    Reply
  3. Abhishek says:
    October 20, 2011 at 11:20 am

    Hi

    You do not need to inform anybody. You just need to correctly mention your demat account no in the form. The units will come directly come in the mentioned demat account.

    If you take an annual payment option, the money will come into your bank account. and the principal you can redeem only after 5 years through your broker.

    If you are a beginner, I would recommend you go for the Physical option and let the Bond Certificate come to your address.

    Regards
    Abhishek

    Reply
    1. Priya Shah says:
      October 20, 2011 at 12:33 pm

      Thanks Abhishek for quick replay and good advice.

      Plz can u explain me If I purchase in physical format then how I will redeem these bonds after lock period.

      Regards,
      Priya

      Reply

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