Leading bourse BSE has said that certain tax-saving bonds of three firms -- Srei Infrastructure Finance, L&T Infrastructure Finance Company and Infrastructure Development Finance Company -- will not be available for trading till the completion of their five-year lock-in period.
In a circular to its trading members, BSE said that as per the terms of the issuance of bonds having tax benefits for investors, these bonds are locked-in for a period of 5 years from the date of allotment.
These bonds have been listed and permitted for trading pursuant to the application made by these companies.
"However, it is observed that sell orders have been placed by some of the investors, in spite of these shares being under lock-in, resulting in auction of these trades.
"Hence, in order to avoid such errors in future, as an investor friendly measure, the following securities will not be available for trading till the completion of lock-in period," BSE said.
These infrastructure bonds offer tax benefits to the investors with a pre-condition of five-year lock in period. After five years, the investor has the option to hold them for another five years until they mature.
Among the 18 bonds listed by the BSE, the earliest lock-in period ends in 2015, while some others are locked in till 2017.
