Sovereign Gold Bond Scheme 2015-16
Sovereign Gold Bond:
A Sovereign Gold Bond is a government security which denominated in gold grams. Sovereign Gold Bond Scheme was launched by Government in November 2015. It is a substitute for physical gold. Investors invest in these bonds when the scheme opens and it is redeemed on maturity. The Reserve Bank of India on behalf of the Government of India manages the sovereign gold bond scheme.
Bank of Maharashtra offers customers the opportunity to invest in the Sovereign Gold Bond scheme through all of its branches.
- To be issued by Reserve Bank of India on behalf of the Government of India.
- The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.
- The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
- The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates.
- Minimum permissible investment will be 1 gram of gold.
- The maximum limit of subscription shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market.
- In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
- Payment for the Bonds will be through cash payment (up to a maximum of ₹ 20,000) or demand draft or cheque or electronic banking.
- 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.
- The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity, of previous 3 working days published by IBJA Ltd.
- The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
- Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhar card/PAN or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities.
- 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.
- Bonds will be tradable on stock exchanges.
The Sovereign Gold Bonds will be issued in six tranches from October 2020 to March 2021 as per the calendar specified below:
Date of Subscription
Date of Issuance
2020-21 Series VII
October 12 - 16, 2020
October 20, 2020
2020-21 Series VIII
November 09 - 13, 2020
November 18, 2020
2020-21 Series IX
December 28 2020 - January 01, 2021
January 05, 2021
2020-21 Series X
January 11-15, 2021
January 19, 2021
2020-21 Series XI
February 01- 05, 2021
February 09, 2021
2020-21 Series XII
March 01- 05, 2021
March 09, 2021