Structured Products

1. If Structured Product to be Held till Maturity:

Unlisted – On Maturity of NCD, NBFC will give back principal plus interest, where TDS of 10% if PAN mentioned in DP, else 20% if PAN number not specified in DP applicable would be deducted on Interest.

Listed – On Maturity of NCD, NBFC will give back principal plus interest, where TDS of 10% would be deducted on Interest.

2. If Structured Product exited before Maturity: (2 Scenarios)

Selling it to third party, here again two scenarios:

i. Unlisted –

1. Selling before 36 months, it is short term capital Gain, taxed as per tax slab rate
2. Selling after 36 months, it is Long term Capital Gain where taxed @ 20% without indexation benefit

ii. Listed –

1. Selling before 12 months, it is short term capital Gain, taxed as per tax slab rate
2. Selling after 12 months, it is Long term Capital Gain where taxed @ 10% without indexation benefit

• Structured Products provide investors with an appropriate repayment profile that makes satisfactory yields possible in growing, sinking or sideways-moving markets
• Investors receive qualified advice in selecting an appropriate risk profile and that they have a clear understanding of how the product of their choice functions, hence being a Plan B to the Portfolio
• Hence by any measure, Structured Products are an innovative alternative to traditional forms of investment such as stocks and bonds wherein there is a mechanized way of functioning
• It is easier access to new markets that in the past were open only to institutional investors, such as raw materials or growing economies. It also has a diversified approach