Sovereign Gold Bonds 2023-24 Series III: The concern value of the SGBs 2023-24 (Series III) can be Rs 6,199 per gram. A reduction of Rs 50 per gram can be allowed to these traders who apply on-line.
The Sovereign Gold Bonds 2023-24 Series III can be opened for public subscription between December 18 and December 22, 2023. The date of the bonds issuance has been fastened as December 28, 2023.
“The issue price of the Bond during the subscription period shall be Rs 6,199 per gram, as also published by RBI in their Press Release dated December 15, 2023,” the finance ministry stated in a press release.
It added that the federal government in session with the RBI has determined to permit a reduction of Rs 50 per gram from the difficulty value to these traders who apply on-line and the fee is made via digital mode. For such traders, the difficulty value of gold bonds can be Rs 6,149 per gram of gold.
The SGBs can be offered via Scheduled Commercial banks (besides Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated publish places of work, and recognised inventory exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Sovereign Gold Bonds 2023-24: Who Is Eligible To Buy?
The SGBs, which can be issued by the Reserve Bank of India on behalf of the federal government, can 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 traders can be compensated at a hard and fast charge of two.50 per cent each year payable semi-yearly on the nominal worth.
The value of SGB can be fastened 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 concern value of the SGBs can be much less by Rs 50 per gram for the traders who subscribe on-line and pay via digital mode.
Payment for the SGBs can be via 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 can 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 infrequently.
The bonds can be denominated in multiples of grams of gold with a fundamental unit of 1 gram and their tenure can be for a interval of eight years with an possibility of untimely redemption after fifth yr to be exercised on the date on which curiosity is payable.
A self-declaration to this impact can be obtained. The annual ceiling will embody SGBs subscribed beneath totally different tranches, and people bought from the secondary market, through 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 value can be in Indian Rupees based mostly 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 atypical gold mortgage mandated by the Reserve Bank infrequently, 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.
