The bonds in the form of promissory notes, being negotiable instruments are transferable by endorsement and delivery by the transferor. The transferor has to affix his/her signature at the place indicated on the reverse side of the bond certificate and the transferee has also to write his name and affix his/her signature at the appropriate place. The vernacular endorsement must be translated into English immediately below the name. In case of thumb impression, it is required to be attested by the authorised person (Magistrate, notary public, gazetted officer, managers of nationalised banks or officer of TFCI).

Please ensure that the buyers and sellers have signed at appropriate places in the certificate and the buyer's address is given in full including pin code and telephone and fax number, if any in a separate letter.

Please ensure that the transferor has put his signature in full and that all the holder(s) of the bond certificate have signed the endorsement.

If the bond certificate is signed by the constituted Attorney of transferor, please ensure that the registration number of the Power of Attorney registered with TFCI/Registrar is mentioned on the reverse of the certificate. Otherwise, the transferor may be requested to have the Power of Attorney immediately registered with the Registrar/TFCI before approaching for transfer.

In case a transferee wishes to have the bond certificate signed by his constituted Attorney, it will be necessary to attach the necessary Power of Attorney duly notarised. Please note to obtain a registration number from TFCI. In case the transferee is acting through his constituted Attorney, and his Power of Attorney has already been registered with TFCI, please quote the registration number at the appropriate place.

In case the purchaser is already having an existing folio number in the same scheme, please quote the same to enable us to register new bonds in the same folio number.

Payment of interest on bonds is made to registered bondholders only. In case of transfer, the transferee is advised to register his name with TFCI. Investors are advised to register their transfer before the record date i.e. 1 month prior to date on which interest is due or before mailing post dated warrants.

Transmission of bonds certificate arises in case of death of the registered bondholder. A copy of the death certificate of the deceased registered bondholder duly attested by authorised person (magistrate, notary public, gazetted officer, managers of nationalised banks or officials of TFCI) may please be sent along with the bond certificate. If the bonds are held in joint names, only the deceased bondholder's name will be deleted.

In case a bond is held by two or more holders, the bond will be transmitted to the survivor or survivors and on the death of the last survivor, to his executors, administrators or any person who is the holder of a succession certificate in respect of such bond.

Transmission of the bonds will be effected to the heirs of the deceased bondholder on production of succession certificate or letter of administration.

Transposition (change in the order of holders)

Transposition can be resorted to change the order of holders of the bonds inter se i.e. the first holder may become second holder or third holder and vice versa. The same procedure as in the case of transfer should be followed. Bondholders will sign as transferor in the order mentioned in bond certificate (original order) and will mention their names and signature as transferee in revised order. All requests for transposition should be sent to the Registrar along with the duly filled in endorsement on the reverse of the bond.

When a certificate is in the name of single person or two persons and he/she/they desire/s to add one or more name(s) (allowed upto three) as joint holders of the bond certificate, he/she/they is/are advised to follow the procedure applicable to the transfer of bond certificate (i.e. the original holder(s) has/have to sign on reverse side of the bond certificate as transferor(s) and then the original holder(s) and additional holder(s) has/have to write their name(s) and affix signature(s) as transferee at appropriate places). In case the name to be added is that of minor, the minor's name to be written first, below which the guardian's name has to be written under the same column. Signature(s) is/are to be put as explained above. The certificate may be forwarded to the Registrar/TFCI for registration.

Issue of duplicate bond certificate

In case of defaced/damaged bond certificate(s) Duplicate bond certificate(s) are issued in lieu of defaced/ damaged bond certificates or lost/stolen

The defaced/damaged bond certificates may be sent with a request along with relevant information as mentioned above, to enable us to issue duplicate certificate(s). No letter of surety is required where damaged bond certificate is sent for issue of duplicate certificate.

In case of theft or loss (other than postal loss) of certificate(s) The loss of bond certificate(s) shall be reported immediately to the Registrar/TFCI along with certificate nos./folio no. and distinctive nos. to enable us to stop transfer of such bonds.

A complaint shall have to be lodged with the local police station about the loss of certificate(s) and a copy of the FIR shall be obtained and furnished.

The request for issue of duplicate bond certificate(s) shall be sent to Registrar/TFCI along with Letter of Indemnity in the prescribed form duly stamped and a Letter of Surety, if required.

In case of postal loss of certificate(s) In case the bond certificate(s) have been lost in postal transit or not received, duplicate bond certificate(s) will be issued on receipt of Letter of Indemnity and a Letter of Surety, if required along with request letter.

Duplicate bond certificate(s) will be issued only after necessary notification regarding loss/non-receipt of the original bond certificate(s) is given in the newspapers.

Issue of duplicate interest warrant(s)

Interest warrants are dispatched generally in advance before the due date to the registered bondholders. Bondholders who do not receive interest warrants within reasonable period after due date shall inform the fact of non-receipt of interest warrants to the Registrar/TFCI quoting folio no., certificate no., name and other relevant details such as type of issue, name of scheme, and the period to which the interest warrant pertains.

Where the warrants has been issued and posted, but not returned undelivered or has been lost, duplicate interest warrants will be issued only after reconciling the Bank statement and investor furnishing the indemnity and after it is found that the said warrant has not been enchased.

Revalidation of interest warrants

On expiry of the validity period, the warrant(s) may be sent to TFCI/Registrar for revalidation/issue of demand draft.

Correction of mistakes in bond certificate(s)/warrant(s)

Requests for correction in bond certificates/interest warrants duly signed by all the holders may be sent along with the original document.

Change of address/bank details

Request for change in address/bank details will be entertained only if it is in writing and signed by first bondholder indicating the folio number.

Redemption of Bonds

Different types of bonds issued by TFCI from time to time have different maturity period and procedure for the same has been clearly spelt out in the bond certificate. Bondholders are requested to go through the same in detail and apply for redemption or exercise put option within the time as indicated in the bond certificate.

The bondholder must get his name registered with TFCI if he decides to exercise early redemption option. Further, if TFCI decides to exercise Call Option, the redemption proceeds are given to the registered bondholder.

The bond will be redeemed only on surrender of the duly discharged bonds certificates by registered bond holder(s). Investor may note that this is necessary as the bonds are transferable by endorsement and delivery and registration of transfer is not compulsory.

While exercising Put Option or discharging the bond certificate, the registered bondholder or transferee has to affix revenue stamp of the value of rupee one on the reverse of the bond and put his/her signature on the revenue stamp. All holders/transferee(s) have to sign the endorsement and write there "Please pay the redemption value".

Tax deduction at source from interest payment

Interest on bonds is treated as interest on securities for the purpose of income-tax.
Interest on bonds is subject to TDS at prevailing rate.

Where the tax is deducted at source, a certificate to that effect in form 16A is issued to investor. In case same is not received by the investor, he may write to Registrar/TFCI with full details.

In case of entities other than PF/ Gratuity Fund / Superannuation Fund mentioned , they are required to furnish a certificate in Form 15AA issued by the Assessing Officer having jurisdiction over them, authorising deduction of tax at a rate lower than the prescribed rate/NIL rate. On furnishing such certificate, lower or no tax will be deducted on payment of interest on bonds.

Contact Us

All the correspondence relating to bonds may be addressed to TFCI Head office. While sending queries/grievances, please quote the name of the issue/scheme, application no., folio no., certificate no., subject matter, etc. Please give your full address including pin code and telephone/fax no., if any.

The communication must be legible.

Valuable documents may be sent by registered post.

Please retain photo-copies of application, bond certificates and postal registration slip/acknowledgement etc. This would facilitate future queries.

Any change in the signature may be intimated with fresh specimen signature duly attested by your banker (to be signed by your Bank Branch official).

While reply is generally given within 10 days from the date of receipt of grievance, matters like transmissions/ transfers, etc. take about 1 month.

In the case of issue of duplicate bond certificates, since the procedure involved is elaborate, it takes some more time. However, they are issued within 30 days from notification of loss in newspapers.