TMI BlogGovernment of India in consultation with RBI decides to issue Sovereign Gold Bond Scheme 2017-18– Series II; Applications for the bond will be accepted from July 10, 2017 to July 14, 2017; The Bonds will be issued on July 28, 2017.X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of India in consultation with RBI decides to issue Sovereign Gold Bond Scheme 2017-18– Series II; Applications for the bond will be accepted from July 10, 2017 to July 14, 2017; The Bonds will be issued on July 28, 2017. - News and Press Release Dated:- 7-7-2017 - News - Press Information Bureau Government of India Ministry of Finance 06-July-2017 19:23 IST Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds 2017-18 Series II. Applications for the bond will be accepted from July 10, 2017 to July 14, 2017. The Bonds will be issued on July 28, 2017. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... National Stock Exchange of India Limited and Bombay Stock Exchange. The features of the Bond are given below: Sl.No. Item Details 1 Product name Sovereign Gold Bond 2017-18 Series II 2 Issuance To be issued by Reserve Bank India on beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of the Government of India. 3 Eligibility The Bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions. 4 Denomination The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5 Tenor The tenor of the Bond will be for a period of 8 years with exit option from 5 th year to be exercised on the interest payment dates. 6 Minimum size Minimum permissible investment will be 1 gram of gold. 7 Maximum limit The maximum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount subscribed by an entity will not be more than 500 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained. 8 Joint holder In case of joint holding, the investment limit of 500 grams will be applied to the first applicant only. 9 Issue price Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice of Bond will be 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 for the week (Monday to Friday) preceding the subscription period. The issue price of the Gold Bonds will be ` 50 per gram less than the nominal value. 10 Payment option ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Payment for the Bonds will be through cash payment (upto a maximum of ₹ 20,000) or demand draft or cheque or electronic banking. 11 Issuance form The Gold Bonds will be issued as Government of India Stocks under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form. 12 Redemption price The redemption price will be in Indian Rupees based on previous week s (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA. 13 Sales channel Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), desig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nated post offices as may be notified and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents. 14 Interest rate The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value. 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Collateral 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. 16 KYC Documentation Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard/PAN or TAN /Passport will be required. 17 Tax treatment The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfer of bond 18 Tradability Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI. 19 SLR eligibility The Bonds will be eligible for Statutory Liquidity Ratio purposes. 20 Commission Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmission for distribution of the bond shall be paid at the rate of 1% of the total subscription received by the receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or sub agents for the business procured through them. ************ DSM/SBS/KA - News - Press release - PIB Tax Management India - taxmanagementindi ..... 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