https://v2.webnotes.in/tags/covered-bonds/Recent content in Covered Bonds on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-buy-covered-bonds-wint-wealth/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/how-to-buy-covered-bonds-wint-wealth/<p><strong>Conflict-of-interest disclosure.</strong> This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with Wint Wealth.</p> <aside class="callout callout--note" role="note"> <strong class="callout__label">Prerequisites</strong> <div class="callout__body"><ul> <li>Indian resident with PAN and Aadhaar</li> <li>Demat account (any depository participant)</li> <li>Acceptance of credit / liquidity risk</li> <li>Funds available for the minimum subscription</li> </ul> </div> </aside> <h2 id="step-by-step-procedure">Step-by-step procedure</h2> <p>Five steps per the procedure infobox.</p> <h2 id="post-purchase">Post-purchase</h2> <ul> <li><strong>Bond appears in your demat</strong> (CDSL or NSDL).</li> <li><strong>Coupons credited</strong> to your linked bank per the bond&rsquo;s schedule.</li> <li><strong>Maturity</strong>: Principal credited on the maturity date.</li> </ul> <h2 id="tax">Tax</h2> <ul> <li><strong>Coupon</strong>: Interest income at slab rate.</li> <li><strong>TDS</strong>: May be deducted by issuer above thresholds.</li> <li><strong>Capital gain on sale</strong>: STCG (slab) / LTCG (per FY rules).</li> </ul> <p>For complex tax situations or large allocations, consult a Chartered Accountant.</p>https://v2.webnotes.in/wint-wealth-covered-bonds/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/wint-wealth-covered-bonds/<p><strong>Covered bonds</strong> are debt instruments where the lender has dual recourse: (1) the issuer&rsquo;s general balance sheet AND (2) a dedicated collateral pool.</p> <h2 id="structure-on-wint-wealth">Structure on Wint Wealth</h2> <ol> <li>NBFC issues a bond.</li> <li>NBFC pledges a pool of receivables (loans / mortgages) as cover.</li> <li>If NBFC defaults, the cover pool is liquidated for the bond holders&rsquo; benefit.</li> <li>Wint Wealth aggregates retail subscriptions.</li> </ol> <h2 id="why-dual-recourse-matters">Why dual recourse matters</h2> <ul> <li><strong>Vanilla unsecured bond</strong>: Only the issuer&rsquo;s balance sheet.</li> <li><strong>Covered bond</strong>: Issuer + cover pool.</li> </ul> <p>Lower credit risk for similar yield (compared to comparable unsecured bonds).</p>