These bonds are typically issued by different public sector undertaking, some of which include National Highways Authority of India (NHAI), Power Finance Corporation Ltd. (P.F.C.), National Bank for Agriculture and Rural Development (NABARD), Housing and Urban Development Corporation Ltd. (HUDCO), etc, with the primary motive to raise funds for a specific reason for a fixed time period, and are offered at a pre-determined coupon rate. As issued by the PSUs, these include a very low credit risk. Section 10, Income Tax act allows the exemption of interest earned on these bonds. Also, the bonds are traded on stock exchanges.