Wintopedia

Finance can often be tricky. And financial jargons, even more complicated! At Wint, we aspire to make investing not just a hassle free experience, but also help you in your financial journey from becoming a newbie investor, to a bond (not James) junkie. And so, Welcome to Wintopedia! A platform that will help you learn, understand and analyze the workings of the Indian bond market.

Advance tax is not payable in case of MLDs.

The interest payment is dependent on the performance of the underlying index (Sensex) on the asset maturity date. Since the receipt of interest is conditional (dependent upon performance of underlying index), it can be said that income does not accrue on time proportion basis.

Instead, when the right to receive such interest is established (i.e. when the conditionalities are fulfilled).

Therefore, such income accrues and should be taxable only at the time of maturity.

In case of Covered bonds, where interest is being paid on monthly/quarterly basis, the advance tax would have to be paid by the investor in accordance with the income tax rules.

In simple words, the rating validates the confidence of a credit rating agency that the borrower will repay its debt obligations as agreed.

For eg: AAA being the highest rating and has the highest chances of borrower paying back.

No, you cannot.

This term is known as pledging and as of now, you cannot pledge your assets on Wint Wealth.

No, once the bond matures, investors receive their principal with accumulated interest and its units get extinguished automatically from the investor’s demat account.

At Wint Wealth, we issue covered bonds, which are basically secured bonds with an additional layer of security. The layer of security comes from an SPV or special purpose vehicle which is bankruptcy remote.

The SPV is a separate entity managed by a trustee who acts on behalf of the investors and therefore, if the NBFC goes bankrupt, the money will be paid from this SPV out of the collections received from the underlying pool (secuity cover of covered bond).