SOVEREIGN GOLD BOND SCHEME 2018-19 (SERIES 6) TO BE OPENED FROM MONDAY
- The Sovereign Gold Bond Scheme 2018-19 (Series 6) will be opened from Monday.
- The issue price of the Bond during this subion period will be three thousand three hundred twenty-six rupees per gram with the settlement date of 1st of February.
- The Centre in consultation with the Reserve Bank of India has decided to allow discount of 50 rupees per gram from the issue price to those investors who apply online and make the payment through digital mode.
Sovereign Gold Bond (SGB) Scheme:
- SGB Scheme is aimed at providing alternative to buying physical gold. Under it, bonds are denominated in units of one gram of gold and multiples thereof.
- These gold denominated bonds are restricted for sale to resident Indian entities, including individuals, Hindu undivided families (HUF), trusts, universities and charitable institutions.
- The minimum subscription for individual and HUF is 1 gram and maximum is 4 kg. For trusts and similar entities, maximum subscription is 20 kg per fiscal.
- The tenor of SGB bonds is 8 years with provision of premature cancellation after 5 years on interest payment dates. Investors in SGB bonds have been provided with option of holding them in physical or dematerialised form.
- The bonds can be used as collateral for loans and loan-to-value ratio is set equal to ordinary gold loan mandated by RBI from time to time. Individual investing in it are exempted from capital gains tax arising on redemption of SGB.
- What is the limit for the individual to procure gold in Sovereign Gold Bond (SGB) Scheme?