Sovereign Gold Bond Archives - Tax Heal

Sovereign Gold Bond 2018-19 : Series-I.

CA Satbir Singh — Sat, 14 Apr 2018 01:59:36 +0000

Ministry of Finance

The Government of India, in consultation with the Reserve Bank of India, decides to issue Sovereign Gold Bond, 2018-19-Series-I; Applications for the Bond(s) will be accepted from 16th to 20th April, 2018; The Certificate of Bond (s) to be issued on May 04, 2018; The Bonds to be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., National Stock Exchange of India Ltd and Bombay Stock Exchange, Ltd.

Posted On: 13 APR 2018 7:46PM by PIB Delhi

The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bond, 2018-19-Series-I. Applications for the bond will be accepted from 16th to 20th April, 2018. The Certificate of Bond (s) will be issued on May 04, 2018. The Bonds will be sold through Banks, Stock Holding Corporation of India Limited (SHCIL), designated Post Offices and recognised Stock Exchanges viz., National Stock Exchange of India Ltd and Bombay Stock Exchange, Ltd.

The features of the Bond (s) are given below:

Sl. No.	Item	Details
1	Product name	Sovereign Gold Bond 2018-19 -Series-I
2	Issuance	To be issued by Reserve Bank India on behalf of the Government of India.
3	Eligibility	The Bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions.
4	Denomination	The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
5	Tenor	The tenor of the Bond will be for a period of 8 years with exit option in 5^th, 6^th and 7^th year, to be exercised on the interest payment dates.
6	Minimum size	Minimum permissible investment will be 1 gram of gold.
7	Maximum limit	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.
8	Joint holder	In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
9	Issue price	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.
10	Payment option	Payment for the Bonds will be through cash payment (upto a maximum of Rs 20,000) or demand draft or cheque or electronic banking.
11	Issuance form	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.
12	Redemption price	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.
13	Sales channel	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.
14	Interest rate	The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
15	Collateral	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.
16	KYC Documentation	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.
17	Tax treatment	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
18	Tradability	Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
19	SLR eligibility	Bonds acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards Statutory Liquidity Ratio.
20	Commission	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.

Sovereign Gold Bond ; Dematerialisation

Sovereign Gold Bond Scheme 2017 -18– Series-III

Sovereign Gold Bond -5th Tranch-More than Rs. 820 crore expected to be realised

CA Satbir Singh — Fri, 23 Sep 2016 03:20:17 +0000

More than Rs. 820 crore expected to be realised through Fifth Tranche of Sovereign Gold Bond (SGB) Scheme from 1st to 9th September, 2016; This is mobilised through over 2.00 lakh applications representing around 2.37 tonnes of gold; The next tranche of SGB Scheme is expected around the third week of October, 2016, prior to Diwali, with additional features to attract more consumers.

The amount realised through the 5th Tranche of Sovereign Gold Bond (SGB) Scheme, is expected to cross Rs. 820 crore. This was mobilised through over 2.00 lakh applications representing around 2.37 tonnes of gold. These numbers are likely to go-up further as the receiving offices are still in the process of uploading information of huge rush of applications received on the last day. The aggressive marketing of the product by Govt of India, including through its receiving offices, namely Banks, Post Offices, NSE and BSE helped in mobilizing such encouraging response. SBI at Rs. 245 Crore subscription and Bank of India at Rs. 56 Crore subscription were the top performers. The Post Offices did their bit by attracting maximum number, around 22,000, applicants. The total mobilisation by Post Offices is expected at around Rs. 15-20 crore. The 5th Tranche of Sovereign Gold Bond (SGB) Scheme was open from 1st to9th September, 2016.

The issue price of the Sovereign Gold Bond in 5th tranche worked-out to a still higher level Rs. 3,150 per gram of gold based on the average of closing price of gold of 999 purity for the week August 22 to 26, 2016, as published by the India Bullion and Jewellers Association Ltd. (IBJA).

The Government will come-up with more tranches in 2016-17. The next tranche of SGB is expected around the third week of October, prior to Diwali. The next tranche is expected to come up with additional features to attract consumers even more.

In pursuance of the announcement in the Union Budget 2015-16, the Sovereign Gold Bond (SGB) scheme was launched as an alternative mode of investment to physical gold in November 2015. The aim of SGB is to reduce demand, including through imports, for physical gold, and in process reduce India’s Current Account Deficit.

Three tranches of SGB scheme were floated in 2015-16. In the current financial year two tranches have been launched (4th tranche from July 18-22, 2016 and 5th tranche from September 01-09, 2016). The total subscription in first 4 tranches was Rs. 2239 Crore corresponding to 7.85 tonnes of gold. The highest mobilisation was Rs. 921 Crore in the 4th tranche when the issue price was Rs. 3119 per gram of gold.

The sustained and encouraging response of the investors to the SGB Scheme (Series-I and series-II) of 2016-17, indicates that the product has come of age, and is increasingly becoming popular amongst the general public due to advantages it offers over physical gold, namely use as collateral for loans, Capital Gain Tax exemption on redemption, Zero risk of theft/ impurities associated with handling of physical gold; tradability through Stock Exchanges and also availability in DEMAT and paper form. The product, in addition, earns an interest rate of 2.75% per annum, semi-annually payable on initial investment.

Sovereign Gold Bond 2016-17 – Series I: Issue Price

CA Satbir Singh — Fri, 15 Jul 2016 13:54:46 +0000

Sovereign Gold Bond 2016-17 – Series I: Issue Price

Date : Jul 15, 2016

In terms of GoI notification F.No.4(7)-W&M/2016 and RBI circular IDMD.CDD.No.2020/14.04.050/2016-17 dated July 14, 2016, Series I of the Sovereign Gold Bond 2016-17 will be open for subscription from July 18 to 22, 2016. The issue price of the Sovereign Gold Bond has been fixed at Rs. 3119/- (Rupees Three Thousand One Hundred and Nineteen only) per gram of gold. The rate has been fixed on the basis of simple average of closing price of gold of 999 purity for the week July 11 to 15, 2016 as published by the India Bullion and Jewellers Association Ltd. (IBJA).

Anirudha D. Jadhav
Assistant Manager

Press Release : 2016-2017/143

Related Post

1128 Kg of gold subscription received for Sovereign Gold Bond -3rd tranch

CA Satbir Singh — Fri, 18 Mar 2016 12:41:37 +0000

Third Tranche of SGB from 8th March, 2016 to 14th March, 2016, as per initial figures, show more than 64,000 Applications received for a total subscription of 1128 Kilograms of Gold amounting to Rs. 329 crore; SGB to be issued on March 29, 2016.

During the third tranche of the Sovereign Gold Bond (SGB) scheme from 8th March, 2016 to 14th March, 2016, as per initial figures, more than 64,000 applications have been received for a total subscription of 1128 Kilograms of gold amounting to Rs. 329 crore. The actual figure may vary as comprehensive information from all the authorized receiving agencies is under compilation. These Bonds will be issued on March 29, 2016. The top receiving agencies in terms of subscription amount are SBI, Bank of India, Indian Bank, ICICI Bank, Punjab and Sind Bank, HDFC Bank, Canara Bank, Andhra Bank, PNB, Union Bank of India and Central Bank of India.

The trend during the Third Tranche of SGB shows that the scheme is gradually picking-up amongst the investors with increase in awareness and more clarity about the provisions of the scheme.

The Third Tranche of SGB was kept open from 8th to 14th March, 2016. A Review Meeting through video conferencing was held with the Banks in national Capital by Shri Shaktikanta Das, Secretary, Economic Affairs before the opening of the issue. To increase the awareness amongst potential depositors, the Government had also launched the media campaign through AIR, FM radio, Print media, Mobile SMS, facebook and twitter.

It may be recalled that during the First Tranche of SGB issued in November 2015, 62169 applications were accepted for a total subscription of 915.953 Kilograms of gold amounting to Rs 246.20 crore by the Banks and Post Offices. In the Second Tranche of SGB from 18th January, 2016 to 22nd January, 2016, approximately 3.16 lakh applications were accepted for a total subscription of 2872.3 Kilograms of gold amounting to Rs 746.80 Cr crore by the Banks.

Earlier, the Government of India had launched the Sovereign Gold Bond (SGB) Scheme on 5th November, 2015. The objective of the scheme is to reduce the demand for physical gold and shift a part of the domestic savings used for purchase of gold, into financial savings.

Sovereign Gold Bonds are issued on behalf of Government of India in tranches by RBI, from time to time, on payment of the required amount in rupees. The Bonds are denominated in grams of gold and are restricted for sale to resident Indian entities including individuals, HUFs, trusts, Universities, charitable institutions. Minimum permissible investment is two grams of gold, value of which is to be paid in rupees. The maximum amount which could be subscribed is 500 grams per person per financial year. Government has fixed the rate of interest on gold bonds for the year 2015-16 as 2.75 % per annum, payable on half yearly basis. The tenor of the Bond is for a period of 8 years with exit option from 5th year onwards. On maturity, the investor will get the equivalent rupee value of the quantum of gold invested at the then prevailing price of gold. Exemption, from capital gains is available at redemption. Detailed information about the scheme is also available on the website www.finmin.nic.in/swarnabharat and on the toll free number 18001800000.

RBI set Issue Price of Sovereign Gold Bond 2016 – Series II

CA Satbir Singh — Sat, 05 Mar 2016 12:09:52 +0000

Source Reserve Bank of India

In terms of GoI notification F.No.4(19)-W&M/2014 and RBI circular IDMD.CDD.No. 2020/14.04.050/2015-16 dated March 4, 2016, the third tranche of the Sovereign Gold Bond will be open for subscription from March 8 to 14, 2016. The issue price of the Sovereign Gold Bond for the third tranche has been fixed at Rs.2916/- (Rupees Two Thousand Nine Hundred Sixteen only) per gram of gold. The rate has been fixed on the basis of simple average of closing price for gold of 999 purity of the previous week (February 29, 2016 to March 4, 2016) published by the India Bullion and Jewellers Association Ltd. (IBJA).

Ajit Prasad
Assistant Adviser

Press Release: 2015-2016/2094