CPs, CDs may get to trade on bourses

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

 

The Securities and Exchange Board of India (Sebi) is planning to allow certificates of deposit (CDs) and commercial paper (CP) with residual maturities of 60 days or less on the exchange platform.

This step is seen as a precursor to the mark to market (MTM, revaluing assets at current worth) requirements for mutual funds (MFs), to be implemented from Day 1. Last week, Sebi brought down the threshold for MTM of debt securities by MFs to 60 days from 91 days.

Sebi wants to take it to Day 1. At present, it is difficult to draw yield curve maturities below 60 days. In the normal course, the short-term yield curve has to be upward sloping. But, since prices are not transparent, we have a flat yield curve.

A CD is a time deposit with a bank. CDs are generally issued by commercial banks and can be bought through brokerages. They bear a specific maturity date, a specified interest rate and can be issued in any denomination, much like bonds.

CP is a short-term debt instrument issued by companies. These, typically, bear coupons marginally higher than that of CDs. At present, in the absence of transparent pricing in the over-the-counter (OTC) market, it is difficult to decipher a fool proof valuation mechanism for these instruments. If it's on an exchange platform, prices can be seen by everyone and it will be easier to draw a curve.

At present, these instruments are traded privately but the trades are reported on the exchanges. The move would be good in the long term. Post-trading reporting is of no great use. If the instruments are actually traded and reported on a real time basis, it will be of great value. This mechanism will make the Net Asset Values (NAV) more realisable. Investors can be sure the NAV they see is what they get, both while purchasing and redeeming. It is important to build the peripheral infrastructure to make the exchange mechanism successful.  

 

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. HDFC TaxSaver
2. ICICI Prudential Tax Plan
3. DSP BlackRock Tax Saver Fund
4. Birla Sun Life Tax Relief '96
5. Reliance Tax Saver (ELSS) Fund
6. IDFC Tax Advantage (ELSS) Fund
7. SBI Magnum Tax Gain Scheme 1993
8. Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

 

 

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How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Download REC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you