| Name of Bond |
Sovereign Gold Bond Scheme |
| Issuer |
Reserve Bank of India on behalf of the Government of India (GOI) |
| Type Of Instrument |
GOI Stock under GS Act, 2006. SGBs will be denominated in grams of gold. |
| Face Value / Issue Price (Rs.) / bond |
Price of Bonds shall be fixed in INR on basis of simple average of closing price of gold of 999 purity published by the India Bullion & Jewelers Association Ltd. for the last three working days of 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. |
| Minimum Application |
Minimum permissible investment will be 1 unit (i.e. 1 gram of gold) |
| Maximun Application |
The maximum amount subscribed by an entity will not be more than 4,000 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained. |
| Tenure of the SGB |
8 years with exit option from 5th year to be exercised on the interest payment dates |
| Interest Rate |
2.50% p.a. payable semi-annually |
| Listing / Trading |
Bonds will be listed & tradable on exchanges/NDS-OM from a date to be notified by RBI |
| Mode of Issuance |
In Dematerialized Form only |
| 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(s). |
| Eligible Investors |
Resident indian entities including Individuals, HUFs, Trusts, Universities and charitable institutions. SGBs are NOT open to NRIs. |
