1

2023-24 Series III

December 18 - December 22, 2023

December 28, 2023

2

2023-24 Series IV

February 12 - February 16, 2024

February 21, 2024

1.

Product name

Sovereign Gold Bond 2023-24

2.

Issuance

To be issued by Reserve Bank India on behalf of the Government of India.

3.

Eligibility

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

4.

Denomination

The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.

5.

Tenor

The tenor of the Bond will be for a period of 8 years with an exit option from 5th year onwards to be exercised on the interest payment dates.

6.

Minimum size

Minimum permissible investment will be 1 gram of gold.

7.

Maximum limit

The maximum limit of subscribed 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.

8.

Joint holder

In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.

9.

Issue price

Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the last 3 business days of the week preceding the subscription period. The issue price of the Gold Bonds will be Rs. 50 per gram less for those who subscribe online and pay through digital mode.

10.

Payment option

Payment for the Bonds will be through cash payment (upto a maximum of Rs. 20,000/-) or demand draft or cheque or electronic banking.

11.

Issuance form

The Gold Bonds will be issued as Government of India Stocks under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for issuance and conversion into Demat form.

12.

Redemption price

The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity of previous 3 business days published by IBJA.

13.

Sales channel

Bonds will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices (as may be notified) and recognised stock exchanges viz., National Stack Exchange of India Limited and Bombay Stock Exchange, either directly or through agents.

14.

Interest rate

The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.

15.

Collateral

Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.

16.

KYC Documentations

Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar 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.

17.

Tax treatment

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.

18.

Tradability

Bonds will be tradable on stock exchanges.

19.

SLR eligibility

Bonds acquired by the Banks through the process of invoking lien / Hypothecation / Pledge alone, shall be counted towards SLR.

20.

Commission

Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription received by the receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or sub agents for the business procured through them.