Sovereign Gold Bonds 2023-24: Even as buyers are dashing to the first share market amid again-to-again profitable IPOs, the federal government has additionally introduced two tranches of Sovereign Gold Bonds 2023-24. The SGB 2023-24 Series III shall be opened for subscription on December 18, whereas the SGB 2023-24 Series IV will start on February 12.
Sovereign Gold Bonds 2023-24 Series III
The Sovereign Gold Bonds 2023-24 Series III shall be opened for public subscription between December 18 and December 22, 2023. The date of the bonds issuance has been mounted as December 28, 2023.
Sovereign Gold Bonds 2023-24 Series IV
The Sovereign Gold Bonds 2023-24 Series III shall be opened for public subscription between February 12 and February 16, 2024. The date of issuance has been mounted as February 21, 2024.
“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 stated in a press release.
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, based on the assertion.
Sovereign Gold Bonds 2023-24: Price, Interest Rate Returns
Once issued, the SGB buyers shall be compensated at a hard and fast fee of two.50 per cent every year payable semi-yearly on the nominal worth.
The worth of SGB shall be mounted in Indian rupees on the premise of a easy common of the closing worth 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 challenge worth 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 cost (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 related entities per fiscal yr (April-March) notified by the federal government every now and then.
The bonds shall be denominated in multiples of grams of gold with a fundamental 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 underneath totally different tranches, and people bought from the secondary market, throughout 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 stated.
Sovereign Gold Bonds 2023-24: Redemption
The redemption worth shall be in Indian Rupees based mostly on a easy common of the closing worth 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 every now and then, the finance ministry stated 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.
