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The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds.
Details
- The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021as per the calendar.
- The Bonds will be sold through Scheduled Commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL),designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
- SGBs are government securities denominated in grams of gold.
- They are substitutes for holding physical gold.
- Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
Features
- The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
- 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.
- 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.
Source: PIB
