FAQ'S

This is only for information purpose and is not a Prospectus announcement. These FAQ’s shall not constitute an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any

What is the Issue Structure?

Public Issue by L&T Infrastructure Finance Company Limited (“Company” or “Issuer” or “L&T Infra”) of Long Term Infrastructure Bonds of face value of Rs. 1,000 Each, in the nature of secured, redeemable, non-convertible debentures, having benefits under section 80 CCF of the Income Tax Act, 1961 (the “Bonds”), not exceeding Rs. 11,000.00 million for the financial year 2011-12 (the “Shelf Limit”). The Bonds will be issued in one or more tranches subject to the Shelf Limit for the financial year 2011-12.

What is the Issue Time Table?

Issue Opening Date	November 25,2011
Issue Closing Date	December 24, 2011 The Issue shall remain open for subscription during banking hours for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board subject to necessary approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through newspaper advertisements on or before such earlier or extended date of Issue closure
Deemed Date of Allotment	The Deemed Date of Allotment for Tranche – 1 Bonds shall be the date as may be determined by the Board of the Company and notified to the Stock Exchanges. The actual allotment may occur on a date other than the Deemed Date of Allotment.

Who are the eligible investors?

Indian nationals resident in India, who are not minors, in single or joint names (not more than three), and
Hindu Undivided Families or HUFs, in the individual name of the Karta,

What are the brief terms of the Tranche – 1 Bonds?

Face Value (Rs.) per Tranche 1 Bond	1,000
Issue Price (Rs.) per Tranche 1 Bond	1,000
Minimum Application	Five Tranche 1 Bonds and in multiples of one Tranche 1 Bond thereafter. For the purpose fulfilling the requirement of minimum application, an applicant may choose to apply for five Tranche 1 Bonds of the same series or across different series.
Rating	“CARE AA+” from CARE and “[ICRA] AA+” from ICRA
Security	Exclusive first charge on specific receivables of the Company with an asset cover of 1 time of the total outstanding amount of Tranche 1 Bonds, as may be agreed between the Company and the Trustees for the Debenture holders and first pari-passu mortgage/charge on the leasehold rights on 300 sq.ft. undivided share of vacant land situated at Commander-in-Chief Road, Egmore, Chennai in the State of Tamil Nadu
Security Cover	1.0 time
Listing	BSE
Debenture Trustee	Bank of Maharashtra
Depositories	National Securities Depository Limited and Central Depository Services (India) Limited
Registrar	Sharepro Services (India) Private Limited
Mode of Payment	National Electronic Clearing System Cheques / Demand Drafts Direct Credit NEFT RTGS
Issuance	Dematerialized form or Physical form* as specified by an Applicant in the Application Form.
Lock-in Period	5 years from the Deemed Date of Allotment
Trading	Dematerialized form only following expiry of the Lock-in Period
Maturity Date	10 years from the Deemed Date of Allotment
Buyback Date	Buyback options are available to the Investors on the first Working Day after the expiry of 5 years from the Deemed Date of Allotment or on the first Working Day after the expiry of 7 years from the Deemed Date of Allotment, as the case may be.

What are the specific terms for the each series of NCDs ?

Series	1	2
Frequency of Interest payment	Annual	Cumulative
Face Value per Tranche 1 Bond	Rs. 1,000	Rs. 1,000
Buyback Facility	Yes	Yes
Buyback Amount	Rs. 1,000 at the end of 5 years/ Rs. 1,000 at the end of 7 years	Rs. 1,538.62 at the end of 5 years / Rs. 1,828.04 at the end of 7 years
Buyback Intimation Period	The period commencing from 6 months preceding the relevant Buyback Date and ending 3 months prior to such Buyback Date.	The period commencing from 6 months preceding the relevant Buyback Date and ending 3 months prior to such Buyback Date
Tenor	120 months from the Deemed Date of Allotment	120 months from the Deemed Date of Allotment
Maturity Date	10 years from the Deemed Date of Allotment	10 years from the Deemed Date of Allotment
Interest Rate	9% p.a.	9% p.a. compounded annually
Maturity Amount	Rs. 1,000	Rs. 2,367.36
Yield on Maturity	9%	9% compounded annually
Yield on Buyback	9%	9% compounded annually

What is the Tax Treatment of interest on these Bonds?

The interest received on these bonds shall be treated as income from any other source and shall form part of the total income of the assessee in that financial year in which they are received.

Can a Minor apply for subscription to these bonds?

A minor is not eligible to apply for subscription to these bonds.

Are these infrastructure bonds Tax Free?

No, the interest received in these bonds is not tax free. The investor is liable to pay tax on the interest received.
The investment up to Rs. 20,000 made will be eligible for tax benefits in the year of investment under Section 80 CCF of the Income Tax Act, 1961.

Will TDS be deducted on these bonds?

No TDS shall be deducted on interest with respect to bonds issued in Demat mode. TDS will apply with respect to bonds issued to investors in physical form.

I don't have Demat Account. Can I apply?

Yes, Investors who do not have any Demat Account can apply for the bonds in physical form. Additional requirements for applying in physical form are given in the Annexure.

Please note In terms of Regulation 4(2)(d) of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008, the Company will make public issue of the Tranche 1 Bonds in the dematerialized form. However, in terms of Section 8 (1) of the Depositories Act, 1996, the Company, at the request of the Applicants who wish to hold the Tranche 1 Bonds in physical form, will fulfill such request

I only have a joint De-mat account. Can I apply in my own name only?

The name of applicant shall be same as the holders of Demat account. In case of single applicant the demat account shall also be held in the name of the same single applicant.

Can I apply in joint names?

Yes application can be made in joint names with a maximum of three applicants, however the demat account shall also be held in the joint names and order of applicant shall be the same as appearing in the demat account. In case of application made in joint names, the tax benefit shall only be availed by the first applicant.

What is the maximum amount for which the benefit u/s 80CCF be availed?

Maximum benefit to investor shall be Rs. 20,000/-- under section 80CCF of the Income Tax Act, 1961

What would happen if I apply amount more than Rs. 20,000?

The allotment shall be made as per the Basis of Allotment, However, the benefit under section 80CCF of the Income Tax Act, 1961, of the Income Tax Act may only be availed for a maximum sum of Rs. 20,000

Can I invest in both the options?

Yes an applicant may subscribe in both the options. For the purpose of fulfilling the requirement of minimum subscription, an applicant may choose to apply for five Tranche 1 Bonds of the same series or across different series

What is the benefit of investing in Tax Saving Infrastructure Bonds if they offer the same tax benefit?

The Tax exemption benefit under Sec 80CCF on a sum of Rs. 20,000/- is over and above Rs.1,00,000/- benefit under section 80C, 80CCC and 80CCD.

What is the tenure & lock-in period of these Infrastructure Bonds?

The Tenure of bonds under both the series shall be 10 years and bonds shall be locked-in of 5 years

Who can offer these Long Term Infrastructure Bonds?

The entities like LlC, IDFC, IFCI, and other NBFCs which are classified as Infrastructure Finance Companies by RBI shall be allowed to issue these long term infrastructure bonds.

I Don't have a PAN card. Can I still apply for subscription?

PAN card is mandatory for subscribing to these bonds.

How will I get my interest on the due date?

The interest shall be credited to the respective Bank account registered with the Demat account and for the bond held in physical form in the bank account indicated in a self-attested copy of the cancelled cheque attached with the form as mentioned in Annexure I through ECS on the due date for interest payment, and if the due date is a public holiday then the next working date.

What is the interest on Application Money & Interest on refund ?

The Company shall not pay any interest on application money and interest on refund of Application Amount, in whole or part.

Can I get loan on these bonds?

You cannot avail of any loan by pledging these bonds in the first 5 years. Thereafter, these bonds may be pledged to avail loan

Where shall I submit the application forms?

All Application Forms duly completed together with cheque/demand draft for the amount payable on application must be delivered before the closing of the Issue to any of the Bankers to the Issue or collection centre(s)/agent(s) as may be specified before the closure of the Issue.

Who shall pay the interest and repay the Principal amount?

L&T Infra shall pay the interest on these bonds and also the principle amount to the Investor upon maturity of the bonds or at the time of buy back. The bonds have been assigned credit rating as CARE AA+ by CARE & [ICRA] AA+ by ICRA which are considered to offer high safety for timely servicing of financial obligations.

Who would get the interest in case of the joint application?

In case of joint application the interest shall be paid to the account of the first applicant only.

Is it ok to submit photocopy of all the 3 documents mentioned in the Annexure?

As long as the documents are self attested, the photocopy all these documents can be submitted with the application form.

Mode of Holding can be Either or Survivor?

When the bonds are held in joint names and one of the joint holders dies, the survivor(s) will be recognized as the Bondholder(s)

Will there be TDS in Physical Form? (As per the General Instruction 12, to Avail TDS investor can submit 15G/15H)?

In case the bonds are held in physical form, no TDS is applicable as long as the interest received does not exceed Rs. 2500 per year. However such interest is taxable income in the hands of resident bondholder. If the interest exceeds Rs. 2500, to ensure non-deduction of tax as source the bondholder are required to furnish either (a) declaration [in duplicate] in the prescribed form i.e Form 15G. In case of Senior citizens it should be 15H.

Nomination process in case opted for physical?

L&T Infra would provide the investors holding the bonds in physical form, nomination facility at the time of sending the bond certificates

Is it necessary to provide the identity and address proof in case of second and third holders?

The address and identity proof must be provided for all the joint holders of the bonds. The cheque details would be required only for the account in which the payments need to be credited.

Who are the collecting bankers to the issue?

Axis Bank, City Union Bank, HDFC Bank, ICICI Bank, IDBI Bank, State Bank of India

In whose favour the cheque is to be made?

Cheques has to be made in the favour of “L&T Infra Bonds 2011B”

Can I accept NRI application?

Non-resident investors including NRIs, FIIs and OCBs are not eligible to participate in the Issue.

Will the NCDs be traded on the exchange?

NCDs will be listed on BSE for trading. Trading will commence post completion of the lock in period

Under cumulative option, when will I get the interest amount?

Under cumulative option, Interest will be paid at the end of 5 years if buyback option is exercised or at the time of maturity

I want to know more
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touch points

SMS ‘LTINFRA’ to

5607058

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1800 102 2131

Issue Opens - November 25, 2011Issue Closes - December 24, 2011

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