The Hindu Business Line : `Attractive' way of selling fixed income securities!

DO you hold bonds issued by the likes of Noida Toll Road Co and Industrial Investment Bank of India? Do you wish to offload them without selling them the old-fashioned way?

There is help at hand - in the form of an offer that you may not find unattractive.

Welcome to the informal - and burgeoning - market for select fixed-income instruments.

It is bursting at the seams with more and more players entering the fray with attractive offers to buy paper of different hues.

The number of securities that are getting accepted in this market is on the rise, say sources aware of the developments.

Its limits, they say, have extended beyond regular income bonds from FIs such as ICICI to instruments issued by various smaller infrastructure companies.

Quite a few investment outfits have started making offers for securities issued by Vadodara Halol Toll Road Co, Noida Toll Road Co and Maharashtra Krishna Valley Development Co, among others.

While many of the buyers are relative newcomers, each of them is ready with a list of securities that they wish to acquire.

Mumbai-based 3A Capital Services, which has started to promote its service quite actively, is prepared to buy deep discount and regular income bonds issued by a number of state government-owned companies and nationally-known FIs.

The prices being offered to holders of such instruments are being billed as "attractive".

The company, which operates with the help of a number of branches and franchisees, also advises investors to provide details of the holdings by calling its representatives.

"We will intimate the best price," it says, adding that its representatives will be ready to visit the investors concerned. Payment will be given "on the spot" against delivery of the bonds.

Sources point out that the customer servicing potential of these players is on the rise, thanks to the franchisees that are being appointed in even smaller, regional centres. Moreover, improved marketing techniques are being used to tap a larger number of clients.

Investment circles further suggest that the players involved are willing to provide their services vis-à-vis instruments issued by Power Finance Corporation, Sardar Sarovar Narmada Nigam and the like.

These have added to the existing list comprising, inter alia, securities issued by UTI - 6.75 per cent US 64 bonds and 6.6 per cent ARS bonds. Incidentally, credit rating agency ICRA has recently affirmed its Triple-AAA ratings for both instruments.

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`Attractive' way of selling fixed income securities!

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