Govt to launch sovereign gold bond scheme on October 9

The maximum limit of subscribed would be 4 kg for individual and HUF and 20 kg for trusts and similar entities per fiscal (April-March) notified by using the government on occasion.

The government will launch the next tranche of sovereign gold bond (SGB) scheme, the second in 2017-18, on October 9 to cash in on festive fever.

The bonds will be offered via banks, stock holding company of India limited (SHCIL), particular submit workplaces and known stock exchanges namely the NSE and BSE, the finance ministry mentioned in a remark lately.

The sovereign gold bond scheme was once launched in November 2015 with an function to reduce the demand for physical gold and shift part of the domestic financial savings, used for purchase of gold, into financial savings.

"Goverment of India, in session with the Reserve bank of India, has decided to difficulty Sovereign Gold Bonds 2017 -18 - series-III. applications for the bond might be familiar from October 09, 2017 to December 27, 2017," it said.

The Bonds will probably be issued on the succeeding Monday after each and every subscription duration, it mentioned.

Under the scheme, the bonds are denominated in units of one gram of gold and multiples thereof. minimal investment within the bonds is one gram with a maximum limit of subscription of 500 grams per person per fiscal yr (April–March).

The maximum limit of subscribed would be 4 kg for individual and HUF and 20 kg for trusts and equivalent entities per fiscal (April-March) notified via the federal government once in a while, it said.

The annual ceiling will include bonds subscribed below totally different tranches throughout initial issuance by using the federal government and people purchase from the secondary market, it mentioned.

The federal government has up to now issued nine tranches of SGBs when you consider that its launch.

To advertise digital fee, it stated, the issue value of the gold bonds will probably be Rs 50 per gram much less for individuals who subscribe on-line and pay via digital mode.

Investors in these bonds have been provided with the option of maintaining them in bodily or dematerialised form.

As per the remark, the bonds with tenure of 8 years will probably be tradable on stock exchanges inside a fortnight of the issuance on a date as notified by means of the RBI.

The investors can be compensated at a set rate of 2.50 % every year payable semi-every year on the nominal worth, it said.

Payment for the bonds shall be through money payment (as much as a maximum of Rs 20,000) or demand draft or cheque or electric banking.

The maximum quantity subscribed by way of an entity may not be more than 500 grams per particular person per fiscal year. A self- declaration to this effect will probably be received. In case of joint keeping, the investment restrict of 500 grams will likely be utilized to the primary applicant best.

Price of bond might be mounted in rupees on the basis of straightforward reasonable of closing value of gold of 999 purity printed via the India Bullion and Jewellers association restricted for the week (Monday to Friday) previous the subscription length. The issue price of the gold bonds shall be Rs 50 per gram not up to the nominal value.

The bonds can be used as collateral for loans. The loan-to-worth ratio is to be set equal to strange gold mortgage mandated by way of the Reserve bank once in a while.

The capital beneficial properties tax arising up on redemption of SGB to an individual has been exempted. The indexation advantages will probably be provided to long-term capital gains coming up to somebody on transfer of bond.

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