Inflation index bonds

This refers to your editorial distribution holds the key to inflation Bonds. The IIBS cant be a success even if there are more incentives to distributors as the Bonds themselves are not attractive to investors from the angle of real rate of return in reality after taking into account the lock in period, lack of cash flows, income tax liability and lack of clear knowledge about the products among the investing class like pensioners, small depositors etc. RBI has made it complicated and made it unattractive for investors and as such, distributors cannot do much even if there are better incentives.

Dr.T.V.Gopalakrishnan

( This comment is given in response to the editorial Distribution holds the Key to inflation bonds that appeared in ET dated 11/12/13)