🌟 **Sovereign Gold Bond Scheme** 📅 **Launch Date: October
30, 2015
🪙 Sovereign Gold Bond Scheme 2023-24 Series
III - Issue Price
📅 Subscription Period: December 18–22, 2023
🔍 Details:
As per the Government of India notification F.No.4(6)-B(W&M)/2023 and the
Reserve Bank press release on December 08, 2023, the Sovereign Gold Bond Scheme
2023-24 - Series III will be open for subscription from December 18 to December
22, 2023.
📈 Nominal Value
Calculation: The nominal value of the bond is determined based on
the simple average of the closing prices published by the India Bullion and
Jewellers Association Ltd (IBJA) for gold of 999 purity on the last three
working days of the week preceding the subscription period.
For the upcoming series, i.e.,
December 13, December 14, and December 15, 2023, the calculated nominal value
is ₹6,199/- (Rupees Six thousand one hundred and ninety-nine only) per gram of
gold.
💻 Discount for
Online Investors: In a strategic
move, the Government of India, in consultation with the Reserve Bank, is
offering a discount of ₹50/- per gram less than the nominal value to investors
applying online and making payments through digital modes.
For these tech-savvy investors,
the issue price of the Gold Bond becomes ₹6,149/- (Rupees Six thousand one
hundred and forty-nine only) per gram of gold. 🤖💰
🌐Subscription Window: Investors
are encouraged to seize this opportunity and subscribe to the Sovereign Gold
Bond Scheme during the specified period.
It's a chance to secure gold at
an attractive rate, especially for those embracing the convenience of online
transactions. 💻🛍️
🇮🇳 Introduction: The **Sovereign Gold Bond (SGB)** Scheme,
initiated by the Government of India (GOI) on October 30, 2015, is a
distinctive approach to gold investment. 🪙
🌐 Scheme
Overview: Under the Gold Monetization Scheme, SGBs were introduced,
offering a strategic way for investors to participate in gold without the need
for physical possession. Issued monthly from October 2021 to March 2022, these
bonds are made available in tranches by the Reserve Bank of India (RBI) in
collaboration with the Indian Government. 📈🤝
🧐 Understanding
SGB: Denominated in grams of
gold, with a minimum unit of 1 gram.
- Interest rate of 2.50% per
annum, paid semi-annually on the nominal value.
- 8-year tenure with an exit
option in the 5th, 6th, and 7th years on interest payment dates.
- Maximum individual subscription
limit: 4 kg; 4 kg for a Hindu-Undivided Family (HUF); 20 kg for trusts and
similar entities.
- Co-owned bonds limit applies to
the first applicant.
- Issued as stocks under the
Government Security Act, 2006.
- Investors receive a Holding
Certificate. 📜💼
🇮🇳 Cultural
Significance: In India, gold holds cultural significance, often
purchased on auspicious occasions. While physical gold is the preferred choice,
the Government and RBI offer an alternative through Sovereign Gold Bonds. This
aligns with Indian traditions, combining investment with cultural practices. 💍🎉
💰 What are Sovereign Gold Bonds? Sovereign
Gold Bonds, falling under Debt Funds, emerged in November 2015 as an innovative
alternative to physical gold acquisition. These government securities,
denominated in grams of gold, require investors to pay the issue price in cash.
Upon maturity, the redemption occurs in cash.
🔒 Secured Investment: Sovereign Gold
Bonds offer a secured investment, minimizing susceptibility to market risks and
fluctuations. Issued by the Government, these bonds have predefined windows
during which investors can subscribe in tranches. 🪙📉
📢 Issuance Announcements: The
Government typically announces the issuance of gold bonds every 2 or 3 months
through press releases, signaling a one-week subscription window. With an
8-year maturity period, investors have the flexibility to exit after 5 years. 📰🕒
1. What is SGB?
- Govt. securities denominated in grams of gold.
- Issued by RBI on behalf of the Govt. of India.
2. Why SGB over physical gold?
- Protected quantity, superior to physical gold.
- Eliminates storage risks and costs.
3. Risks in SGBs?
- Capital loss if gold market price declines.
4. Who is eligible to invest?
- Residents in India as per FEMA 1999.
5. Can minors and joint
holding invest?
- Yes, with a guardian. Joint holding allowed.
6. Where to get the
application form?
- Issuing banks, SHCIL offices, Post Offices, online.
7. What are the KYC norms?
- PAN Number mandatory.
8. Minimum and maximum limits
for investment?
- Issued in denominations of one gram.
- Min 1 gram, Max 4 kg for individuals.
9. Rate of interest and
payment?
- 2.50% per annum, credited semi-annually.
10. Authorized agencies for
selling SGBs?
- Nationalized/Private Banks, Post Offices,
SHCIL, stock exchanges.
11. Assurance of allotment?
- Yes, if eligibility criteria met.
12. When are Holding
Certificates issued?
- On the date of SGB issuance.
13. Can I apply online?
- Yes, with a ₹50 per gram discount for
online applications.
14. Price at which bonds are
sold?
- Nominal value in INR based on average
gold price.
15. Daily publication of gold
rates by RBI?
- Yes, two days before the issue opens.
16. What will I get on
redemption?
- Redeemed in INR based on average gold
price.
17. Redemption process and
amount?
- Advised one month before maturity.
- Credited to the bank account.
18. Premature redemption and
tradability?
- Allowed after the fifth year.
- Tradable on exchanges if in demat form.
19. Tax implications on
interest and capital gain?
- Taxable interest, exempted capital gains.
20. TDS applicable on the
bond?
- No TDS, holder's responsibility for tax
compliance.
21. Customer services
post-issuance?
- Provided by issuing banks, SHCIL, Post
Offices, stock exchanges.
22. Payment options for
investing?
- Cash (up to ₹20,000), cheques, demand
draft, electronic fund transfer.
23. Nomination facility
available?
- Yes, as per Govt. Securities Act.
24. Can bonds be held in demat
form?
- Yes, with a specific request.
25. Trading of bonds?
- Tradable from a date notified by RBI.
26. Death of an investor
procedures?
- Nominee's claim recognized, applicable
provisions followed.
27. Part repayment during put
option exercise?
- Yes, in multiples of one gram.
28. Contacting RBI for
queries?
- Dedicated email for public queries. 📧
Choose your gold investment
wisely! 💰✨🌐
🌟 Gold
Investment Options Comparison 🌟
Gold
ETFs / RBI Sovereign Gold Bond / Physical God
🔍 Insights:
- Safety:
All three options provide a high level of safety, with minimal risk in digital
forms.
- Returns:
Sovereign Gold Bonds offer higher returns, especially if held until
maturity.
- Purity:
Electronic forms (ETFs and Bonds) assure high purity.
- Tradability:
Gold ETFs and Sovereign Gold Bonds offer tradability, while physical gold is
restrictive.
- Gains:
Tax benefits in LTCG for Bonds if redeemed after maturity.
- Storage:
Digital forms require minimal storage, unlike physical gold.
- Loan
Collateral: Bonds and physical gold can be used as loan collateral.
**🚀 Celebrate Safe ePayDay! 💳✨**
In the digital realm, a special
day is on the horizon—
SafeePayDay! 🌍✨ Join us in a global
celebration, promoting secure, seamless, and responsible electronic
transactions. 🌐💼
Stay tuned for the occasion when
we collectively recognize the significance of secure ePayments, shaping a
trustworthy financial landscape. 🎉💳
#SafeePayDay
#DigitalTrust #SecureTransactions 🚀
📢 Disclaimer: Personal views. Focus on
declaring Safe ePayDay.
Celebration is near!
Copyrights belong to the original
holder.
Additional
Reading Material: PM’s address in the 107th Episode of ‘Mann Ki Baat’ on 26
Nov, 2023 @ https://www.pmindia.gov.in/en/news_updates/pms-address-in-the-107th-episode-of-mann-ki-baat/
