Sovereign Gold Bonds To Be Issued from Feb 12-16
IANS 12 February 2024
Finance ministry on Friday said that the Sovereign Gold Bonds (SGBs) 2023-24 (Series IV) will be open for subscription during February 12-16, with settlement date as 21st February.
The gold bonds will be issued by the Reserve Bank of India (RBI) at a price of Rs6,263 per gram.
The government in consultation with RBI has decided to allow a discount of Rs50 per gram from the issue price of Sovereign Gold Bonds to investors who apply online and the payment is made through digital mode.
For such investors the issue price of Gold Bond will be Rs6, 213 per gram of gold.
Payment for the Bonds will be through cash payment (up to a maximum of Rs20,000/-) or demand draft or cheque or electronic banking.
The SGBs will be available through various channels, including scheduled commercial banks, Stock Holding Corporation of India (SHCIL), Clearing Corporation of India (CCIL), designated post offices, and recognised stock exchanges, such as the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Individual investors can start with a minimum investment of 1gm and go up to a maximum of 4kg.
The know-your-customer (KYC) norms for SGBs are the same as that for purchasing physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Permanent Account Number (PAN) issued by the income-tax department is mandatory.
SGBs come with tenure of eight years with an exit option after the fifth year. SGBs are tax-free if held till maturity.
SGBs also offer an annual interest of 2.50%, credited semi-annually to the buyer’s bank account, with the final interest payment made at maturity along with the principal amount. Upon maturity, buyers will receive the value of gold at current market prices, and the interest income, all of which is tax-free.
SGBs can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by RBI from time to time.
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