SOVEREIGN GOLD BOND SCHEME 2018-2019
TRADE ON BSE LIKE ANY SECURITY
GET 2.5% ANNUAL INTEREST
NO SST OR CAPITAL GAIN TAX
ISSUE PRICE WILL BE RUPEE 50 PER GRAM LESS THAN THE NOMINAL VALUE
Sovereign Gold Bonds are Government Securities denominated in gram of gold
Issue by Reserve Bank of India (RBI) on behalf of Government of India
Minimum investment in the bond shall be one gram and with the maximum buying limit of 4kgs per person per fiscal year (April-March)
Investor will receive the ongoing market price at the time of redemption/premature redemption
Sovereign Gold Bonds are eligible to be used as collateral for loans from banks, financial institutions and Non-Banking Financial Companies (NBFC)
Tenure is 8 years with an exit option from 5th year onward
Sovereign Gold Bonds are traded on Exchanges, if held in demat form. It can also be transferred to any other eligible investor
Available in Demat form only
Issuance through authorized members of BSE
The Sovereign Gold Bonds will be issued every month from October 2018 to February 2019 as per the calendar specified below:
| Sr. | Tranche | Period of Subscription |
| 1 | 2018-19 Series II | October 15-19, 2018 |
| 2 | 2018-19 Series III | November 05-09, 2018 |
| 3 | 2018-19 Series IV | December 24-28, 2018 |
| 4 | 2018-19 Series V | January 14–18, 2019 |
| 5 | 2018-19 Series VI | February 04-08, 2019 |
Eligibility for Investment
The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. The bond may also be held by a Trust, HUFs, Charitable Institution and University. “Person resident in India” is defined under section 2(v) read with section 2(u) of the Foreign Exchange Management Act, 1999
Date of Issue
For the applications received during a given week, the bond shall be issued on the second business day of next week.
Denomination
The Bonds shall be denominated in units of one gram of gold and multiples thereof. Minimum investment in the Bonds shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March). A self-declaration to this effect will be obtained, provided that
- in case of joint holding, the investment limit of subscription of 4 Kgs shall be applicable to the first applicant only;
- annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market;
- the ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.
Issue Price
The nominal value of the Bonds shall be fixed in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewelers Association Limited for the last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online (only for Retail customer) and the payment against the application is made through digital mode.
Tenure of the Bond
The tenor of the Bond will be for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates.
Interest
The Bonds shall bear interest from the date of issue at the rate of 2.50 percent (fixed rate) per annum on the nominal value. Interest shall be paid in half-yearly rests and the last interest shall be payable on maturity along with the principal. Interest will be credited directly to your account which you shared while investing.
Issuance Form
The Gold bonds will be issued as Government of India Stock under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into Demat form.
Redemption
The Bonds shall be repayable on the expiration of eight years from the date of issue of Bonds. Pre-mature redemption of the Bond is permitted from fifth year of the date of issue on the interest payment dates.
The redemption price shall be fixed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of the previous 3 working days, published by the India Bullion and Jewelers Association Limited.
