Sovereign Gold Bonds 2023-24 Series IV: The Sovereign Gold Bonds 2023-24 Series IV goes to be opened for public subscription for 5 days between February 12 and February 16, 2024. The issuance will happen on February 21, 2024.
The SGB 2023-24 Series III was opened for subscription in December 2023.
“The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited,” the finance ministry has mentioned in an announcement.
Sovereign Gold Bonds 2023-24: Who Is Eligible To Buy?
The SGBs, which shall be issued by the Reserve Bank of India on behalf of the federal government, shall be restricted on the market to resident people, Hindu Undivided Families (HUFs), trusts, universities and charitable establishments, in keeping with the assertion.
Sovereign Gold Bonds 2023-24: Price, Interest Rate Returns
Once issued, the SGB buyers shall be compensated at a set price of two.50 per cent each year payable semi-yearly on the nominal worth.
The value of SGB shall be mounted in Indian rupees on the premise of a easy common of the closing value of gold of 999 purity, printed by the India Bullion and Jewellers Association Limited (IBJA) for the previous three working days of the week previous the subscription interval. The subject value of the SGBs shall be much less by Rs 50 per gram for the buyers who subscribe on-line and pay by means of digital mode.
Payment for the SGBs shall be by means of money fee (as much as a most of Rs 20,000) or demand draft or cheque or digital banking.
Sovereign Gold Bonds 2023-24: Minimum Investment
The minimal permissible funding shall be one gram of gold, whereas the utmost restrict of subscription shall be 4 kg for particular person, 4 kg for HUF and 20 kg for trusts and comparable entities per fiscal yr (April-March) notified by the federal government now and again.
The bonds shall be denominated in multiples of grams of gold with a primary unit of 1 gram and their tenure shall be for a interval of eight years with an choice of untimely redemption after fifth yr to be exercised on the date on which curiosity is payable.
A self-declaration to this impact shall be obtained. The annual ceiling will embrace SGBs subscribed beneath completely different tranches, and people bought from the secondary market, in the course of the fiscal yr.
“The SGBs will be issued as Government of India Stock under the Government Securities Act, 2006. The investors will be issued a Certificate of Holding for the same. The SGBs will be eligible for conversion into demat form,” the ministry mentioned.
Sovereign Gold Bonds 2023-24: Redemption
The redemption value shall be in Indian Rupees primarily based on a easy common of the closing value of gold of 999 purity, of the earlier three working days printed by IBJA Ltd.
Sovereign Gold Bonds 2023-24: Can It Be Used As Collateral For Loans?
The bonds can be utilized as collateral for loans. The mortgage-to-worth (LTV) ratio is to be set equal to the strange gold mortgage mandated by the Reserve Bank now and again, the finance ministry mentioned within the assertion.
Sovereign Gold Bonds 2023-24: Income Tax Applicability
“The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond. SGBs shall be eligible for trading,” it added.
How to purchase Sovereign Gold Bonds (SGBs) on-line?
Step 1: First log in to your respective internet banking account.
Step 2: From the primary menu, choose ‘e-Service’ and click on on ‘Sovereign Gold Bond’.
Step 3: For new prospects, choose ‘Register’. Then learn the phrases and circumstances set by the Reserve Bank of India (RBI), and proceed.
Step 4: Enter all required SGB scheme particulars in addition to details about the depository participant from CDSL or NSDL, relying on the place your demat account is hosted.
Step 5: Submit the net registration kind.
Step 6: After registration, choose the buying choice from the header hyperlink/part or instantly choose ‘Purchase’.
Step 7: Enter your subscription amount in addition to nominee particulars.
Step 8: To full the method, key within the one-time password (OTP) despatched to your registered cellular quantity.
