HNI definition reduced to Rs 1 lakh for REC bonds

The Union government has reduced the cap on subscription by retail investors in the Rs 3,000-crore tax-free bond issue of Rural Electrification Corp (REC) to Rs 1 lakh, from Rs 5 lakh that was allowed for previous such issues. A notification dated February 14 issued by Central Board of Direct Taxes (CBDT) clearing the issue has said that “any individual investing over Rs 1 lakh will be classified as high net worth individual (HNIs)”.

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