Sl. No.
Merchandise
Particulars
1
Product title
Sovereign Gold Bond Scheme 2022-23
2
Issuance
To be issued by Reserve Financial institution of India on behalf of the Authorities of India.
3
Eligibility
The SGBs will probably be restricted on the market to resident people, HUFs, Trusts, Universities and Charitable Establishments.
4
Denomination
The SGBs will probably be denominated in multiples of gram(s) of gold with a fundamental unit of 1 gram.
5
Tenor
The tenor of the SGB will probably be for a interval of eight years with an possibility of untimely redemption after 5th 12 months to be exercised on the date on which curiosity is payable.
6
Minimal dimension
Minimal permissible funding will probably be One gram of gold.
7
Most restrict
The utmost restrict of subscription shall be 4 KG forindividual, 4 Kg for HUF and 20 Kg for trusts andsimilarentities per fiscal 12 months (April-March) notified by the Governmentfrom time to time. A self-declaration to this impact will beobtained. The annual ceiling will embody SGBs subscribed underneath totally different tranches, and people bought from the SecondaryMarket, throughout the fiscal 12 months.
8
Joint holder
In case of joint holding, the funding restrict of 4 KG will probably be utilized to the primary applicant solely.
9
Challenge value
Value of SGB will probably be mounted in Indian Rupees on the premise of easy common of closing value of gold of 999 purity, printed by the India Bullion and Jewellers Affiliation Restricted (IBJA) for the final three working days of the week previous the subscription interval. The problem value of the SGBs will probably be much less by ` 50 per gram for the buyers who subscribe on-line and pay by digital mode.
10
Fee possibility
Fee for the SGBs will probably be by money cost (upto a most of `20,000) or demand draft or cheque or digital banking.
11
Issuance type
The SGBs will probably be issued as Authorities of India Inventory underneath Authorities Securities Act, 2006. The buyers will probably be issued a Certificates of Holding for a similar. The SGBs will probably be eligible for conversion into demat type.
12
Redemption value
The redemption value will probably be in Indian Rupees primarily based on easy common of closing value of gold of 999 purity, of earlier three working days printed by IBJA Ltd.
13
Gross sales channel
SGBs will probably be bought by Industrial banks, Inventory Holding Company of India Restricted (SHCIL), Clearing Company of India Restricted (CCIL), designated submit workplaces (as could also be notified) and recognised inventory exchanges viz., Nationwide Inventory Change of India Restricted and Bombay Inventory Change Restricted, both straight or by brokers.
14
Rate of interest
The buyers will probably be compensated at a hard and fast price of two.50 % every year payable semi-annually on the nominal worth.
15
Collateral
Bonds can be utilized as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to extraordinary gold mortgage mandated by the Reserve Financial institution every so often.
16
KYC documentation
Know-your-customer (KYC) norms would be the similar as that for buy of bodily gold. KYC paperwork resembling Voter ID, Aadhaar card/PAN or TAN /Passport will probably be required. Each software should be accompanied by the ‘PAN Quantity’ issued by the Revenue Tax Division to people and different entities.
17
Tax therapy
The curiosity on SGBs shall be taxable as per the supply of Revenue Tax Act, 1961 (43 of 1961). The capital positive factors tax arising on redemption of SGB to a person is exempted. The indexation advantages will probably be offered to long run capital positive factors arising to any individual on switch of bond.
18
Tradability
SGBs shall be eligible for buying and selling.
19
SLR eligibility
SGBs acquired by the banks by the method of invoking lien/hypothecation/pledge alone, shall be counted in the direction of Statutory Liquidity Ratio.
20
Fee
Fee for distribution of the bond shall be paid on the price of one % of the overall subscription obtained by the receiving workplaces and receiving workplaces shall share no less than 50 % of the fee so obtained with the brokers or sub brokers for the enterprise procured by them.
