New Delhi: The Reserve Bank will issue two tranches of Sovereign Gold Bonds, which will open for public subscription in December and March.
Sovereign Gold Bonds (SGBs) 2022-23-Series III will open for subscription during December 19-December 23 and 2022-23-Series IV during March 06-10, 2023, the finance ministry said in a statement on Thursday.
Also Read :Bank Holidays 2023: Banks to remain closed THESE days in 2023, detailed list here
These bonds are issued by the Reserve Bank of India (RBI) on behalf of the government.
Also Read : Vijay Diwas 2022: Nation celebrates India’s victory over Pakistan in 1971 Bangladesh liberation war
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 stock exchanges — NSE and BSE.
The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable, the ministry said.
Also Read : Income Tax exemption limit change from Rs 2.5 lakh to Rs 5 lakh expected from Budget 2023
“The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value,” it said.
The maximum limit of subscription is 4 kilogram for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year.
The bonds can be used as collateral for loans.
“The Loan-To-Value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time,” the finance ministry said.
Also Read : PAN Card not mandatory, non-residents can file Form10F manually to claim lower TDS – Check last date
Price of SGB is fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period.
Know Your Customer (KYC) norms will be the same as that for purchase of physical gold.
The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings — used for the purchase of gold — into financial savings.
