Maximum retail subscription and over – subscription
There is a lot of excitement around these bonds, so I won't be surprised if they get over-subscribed on the first day itself. So, I thought Sameer asked a very good question about over-subscription. Here is that discussion.
Here are some other questions that you may find useful.
Can I trade the SBI bonds on NSE after it lists?
Yes, these can be traded after listing.
Where can I get the application forms, and can I buy the bonds online?
You can get the application from notified branches, and then fill it up there and submit it. To the best of my knowledge, there is no way to invest in them online, but if anyone knows otherwise then please leave a message, and let us know.
Can NRIs apply for these bonds?
NRIs can't apply for these bonds as they fall under one of the ineligible categories.
Can you take a loan by keeping the SBI bonds as security?
The terms of the issue in the prospectus state that the bank shall not grant any loans against these bonds. Here is what it says:
In accordance with the RBI guidelines applicable to the Bank, it shall not grant loans against the security of the Bonds.
Will the interest from these bonds be taxable?
Yes, the interest income will be taxable.
These were some good points that came out from the comments on the earlier SBI bonds post, and if you have any more questions, then let's hear them and try to get answers for them.
