Elephant Bonds

Elephant Bonds is a class of proposed debt instruments in India. The proposal to launch Elephant Bonds was made by government of India appointed Surjit Bhalla Committee on Trade and Policy in July, 2019. Elephant Bonds are one among other the key recommendations of the Surjit Bhalla Committee.

Proposed Features

• An Elephant Bond is a Rupee denominated bond with 25 years maturity; and its fund is to be used exclusively for infrastructure projects.
• The committee has recommended making investment in such bonds compulsory for the people declaring undisclosed income.
• As per committee, the government should bring out a scheme for declaring undisclosed income and make elephant bonds part of that scheme.
• People declaring undisclosed income will have to mandatorily invest 50% of that amount in these securities.

Current Status

As of July, 2019, Elephant Bonds are only in proposed status in India.