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Sovereign Gold Bond

 

Sovereign Gold Bonds are the safest way to buy digital Gold, as they are issued by Govt. of Canada, USA, Dubai, Germany, India, You not only benefit from possible Asset appreciation opportunity,  but are also assured 2.50%per annum interest.

Sovereign Gold Bond Current Issues

The details of scheme for subscription are mentioned below:

SI.No                           Tranche                                   Date of Subscription                          Issue Price                    Assured Interest

1         Sovereign Gold Bond 2020-21 Series 5            August 03 To August 07, 2020                     Rs 5284/gram                                2.50%

Item                     

 Product name     

 Issuance             

 Denomination     

 Tenor                   

 Minimum size      

 Maximum  limit   

 Joint holder 

       

 Issue price           

 Payment option    

 Issuance form   

      

 Redemption  price

 

 Sales channel

 

 Interest rate

 Collateral


KYC  Documentation

 Tax treatment

 Tradability

 SLR eligibility

 

 Commission

 

Details

 

Sovereign Gold Bonds

To be issued by Reserve Bank India on behalf of the Government of India.

The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.

 

The tenor of the Bond will be for a period of 8 years with exit option in 5th year, to be exercised on  the interest payment dates.

Minimum permissible investment will be 1 gram of gold.

The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar  entities per fiscal (April-March) notified by the Government from time to time. A self-declaration to this effect  will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance  by Government and those purchase from the Secondary Market.

 

In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.

 

Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity  published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week  preceding the subscription period. The issue price of the Gold Bonds will be Rs. 50 per gram less for those who  subscribe online and pay through digital mode.

 

Payment for the Bonds will be through cash payment (upto a maximum of Rs. 20,000) or demand draft or  cheque or electronic banking.

 

The Gold Bonds will be issued as Government of India Stocks under GS Act, 2006. The investors will be issued a  Holding Certificate for the same. The Bonds are eligible for conversion into demat form.

 

The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity of  previous 3 working days published by IBJA.

 

Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices as  may be notified and recognised stock exchanges viz., National Stock Exchange of India Ltd and Bombay Stock  Exchange Ltd, either directly or through agents.

 

The investors will be compensated at a fixed rate of 2.5% per annum payable semi-annually on the  nominal value.

 

Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan  mandated by the Reserve Bank from time to time. The lien on the bond shall be marked in the depository by the  authorised banks.
Note: The loan against SGBs would be subject to decision of the bank/financing agency, and cannot be inferred  as a matter of right.

 

Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such  as Voter ID, Aadhaar card/PAN or TAN /Passport will be required.

 

The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The  capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will  be provided to long term capital gains arising to any person on transfer of bond

 

Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.

 

Bonds acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted  towards Statutory Liquidity Ratio.

 

Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription received by the  receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or  sub agents for the business procured through them.

Benefits of Of Sovereign Gold Bond Schemes 

 

 

 

 

  • Attractive Interest with asset appreciation opportunity

  • Redemption is linked to Gold Price

  • Elimination of risk and cost of storage

  • Exempt from Capital gains tax, if held till maturity

Hassle free: Ownership of gold without any physical possession (No risks and no cost of storage)

Tax treatment: The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.

Tradability: Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.

Transferability: Bonds shall be transferable by execution of an Instrument of transfer in accordance with the provisions of the Government Securities Act.

Sovereign Gold Bond 2020-21 Series 5

 

This has reference to the GoI notification F.No.4(4)-B(W&M)/2020 and RBI Circular IDMD.CDD.No.2729/14.04.050/2019-20 dated April 13, 2020 announcing that the Sovereign Gold Bond Scheme 2020-21 - Series 5 will be open for subscription from Monday, August 03 to Friday, August 07, 2020.


The Exchange is pleased to announce that BSE’s Online Bidding Platform for Sovereign Gold Bond Scheme 2020-21 - Series 5 (Tranche 42) will be open for subscription from Monday, August 03, 2020 to Friday, August 07, 2020 for trading members to subscribe to the issue for their clients.


Members will be able to place bids for physical mode for their clients to hold SGB units in non-demat form. This will be in addition to the existing bid entry in demat mode through iBBS system - Exchange’s existing web-based online bidding platform for IPO, Offer for Sale (OFS), Offer to buy (OTB) issues.

 

  • Issue Details 

  • Apply Now

Issue Details

isg bonds

 Issue Name 

  Symbol  

 Issue serial number 

 ISIN

 Issue Period 

 Issue Price 

Online BID:

 

 Offline BID: 

 Minimum Quantity 

 

 Maximum Quantity 

 

 Bid Quantity Multiple 

 

 Rate of Interest 

 Date of Allotment

Sovereign Gold Bonds Scheme 2020-21 - Series 5 (Tranche 42) 

 

 

SGB202105

 

 

24233

 

 

IN0020200161

Monday, August 03 to Friday, August 07, 2020

 

 

(per gram of gold)

 

 

Rs. 5,284 (For investors applying online and the payment against the application is made through digital mode)

 

 

Rs. 5,334

 

 

1 gram

 

 

The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for ISG and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market.

 

1 gram

 

 

2.50% per annum on the amount of initial investment. It shall commence from the date of its issue and is payable every 6 months.

August 11, 2020

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