|1. Inflation Indexed Bonds (IIBs) were issued in the name of Capital Indexed Bonds (CIBs) during 1997. How is the new product of IIBs different from earlier CIBs?
2. How will inflation protection be provided to both principal and interest rate? Whether inflation component will be paid along with interest?
3. Whether capital protection will be provided?
4. Why will WPI be used for inflation protection? Why CPI has not considered for the same?
5. What is the formula for calculating index ratio?
6. Why will final WPI be used with a lag of four months?
7. What is the formula for interpolation of daily reference WPI?
[Ref WPIM = Ref WPI for the first day of the calendar month in which Date falls, Ref WPIM+1 = Ref WPI for the first day of the calendar month following the settlement date, D = Number of days in month (e.g. 31 days in August), and t= settlement date (e.g. August 6)]
8. If there is a revision in the base year of WPI series, how will the revised series be used for indexation?
9. What will be the tax treatment of interest payment and capital gains accrual due to inflation?
10. What is non-competitive bidding and how will retail investors be able to participate in the same?
11. Whether foreign institutional investors (FIIs) will be allowed to invest in IIBs?
12. Whether IIBs will be traded in the secondary market?
13. Whether investors will be able to participate in the primary auction of IIBs through web-based platform?
14. Whether IIBs will be eligible for short-sale and repo transactions?
15. Whether IIBs will be eligible for statutory liquidity ratio (SLR)?
16. What will be the settlement cycle for IIBs?
17. What will be the day count for IIBs?
18. Whether issuance of this instrument will be within the Govt market borrowing programme?
19. What will be the maturity of IIBs?
20. What will be the frequency of coupon payment on IIBs?
21. What will be the frequency of issuance of IIBs?
22. Auction of IIBs would be yield based or price based?
23. Whether IIBs will be underwritten by primary dealers (PDs)?
24. What is going to be the issuance size of IIBs for each tranche?
25. Will there be exclusive series of IIBs for retail investors?
26. Whether product structure of the retail series of IIBs would be same as series of IIBs of all investors?
27. What will be methodology for valuation of these bonds?