Government of India
Ministry of Finance
Sl. No.
|
Item
|
Details
|
1
|
Product name
|
Sovereign Gold Bond 2016-17 – 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 from 5th year to be exercised on the interest payment
dates.
|
6
|
Minimum size
|
Minimum permissible investment will be 1 grams of
gold.
|
7
|
Maximum limit
|
The maximum amount subscribed by an entity will not
be more than 500 grams per person per fiscal year (April-March). A
self-declaration to this effect will be obtained.
|
8
|
Joint holder
|
In case of joint holding, the investment limit of 500
grams 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 week (Monday to
Friday) preceding the subscription period.
|
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
|
Government of India Stock under GS Act, 2006. The
investors will be issued a Holding Certificate. The Bonds are eligible for
conversion into demat form.
|
12
|
Redemption price
|
The redemption price will be in Indian Rupees based
on previous week’s (Monday-Friday) simple average of closing price of gold of
999 purity 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 Limited and Bombay Stock Exchange, either directly or through agents.
|
14
|
Interest rate
|
The investors will be compensated at a fixed rate of
2.75 per cent per annum payable semi-annually on the initial value of
investment.
|
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.
|
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/NDS-OM from
a date to be notified by RBI.
|
19
|
SLR eligibility
|
The Bonds will be eligible for Statutory Liquidity
Ratio purposes.
|
20
|
Commission
|
No comments:
Post a Comment