Live Breaking News & Updates on Zero Coupon Par Re Capitalisation Bonds

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In a related party transaction on the last day of the financial year the government of India (GoI), as a principal shareholder, infused Rs14,500 crore of equity in four public sector banks Central Bank of India, Bank of India, UCO Bank, and Indian Overseas Bank (IOB). Simultaneously the four banks invested in bonds issued by GoI. These bonds, of varying maturities between 10-15 years, were issued at a zero rate of interest. These bonds have been labelled zero coupon par re-capitalisation bonds. 
 
Economist Madan Sabnavis has called this an ‘innovative’ fund raising exercise by the GoI. To this bond market observer, it appears a case of too good to be true. It is indeed so, and hardly innovative.  ....

Madan Sabnavis , Rajendra Gill , Indian Overseas Bank , Central Bank , Exchange Board Of India , Financial Stability Development Council , Strange Case , Zero Coupon Par Re Capitalisation Bonds , Face Value , Market Coupon , Total Return , Negotiated Dealing System , Coupon Bonds , Exchange Board , Auditor General , Mutual Fund Returns , Bank Fixed Deposits , Investor Returns , Portfolio Allocation , ராஜேந்திரா கில் , இந்தியன் ஓவர்‌ஸீஸ் வங்கி , மைய வங்கி , பரிமாற்றம் பலகை ஆஃப் இந்தியா , நிதி ஸ்திரத்தன்மை வளர்ச்சி சபை , விசித்திரமானது வழக்கு , முகம் மதிப்பு ,