Sovereign Gold Bond Banner, FAQ & Latest Updates
WHAT IS THE SOVEREIGN
GOLD BOND?
GOLD BOND?
The
Government of India will be launching the Sovereign Gold Bonds Scheme soon. As
investors will get returns that are linked to gold price, the scheme is
expected to offer the same benefits as physical gold. They can be used as
collateral for loans and can be sold or traded on stock exchanges.
BENEFITS
·
The Sovereign Gold Bonds will be
available both in demat and paper form.
·
The tenor of the bond is for a
minimum of 8 years with option to exit in 5th, 6th and 7th years.
·
They will carry sovereign guarantee
both on the capital invested and the interest.
·
Bonds can be used as collateral for
loans.
·
Bonds would be allowed to be traded
on exchanges to allow early exits for investors who may so desire.
·
Further, bonds would be allowed to be
traded on exchanges to allow early exits for investors who may so desire.
·
Capital gain tax arising on
redemption of SGB to an individual has been exempted. The indexation benefit
will be provided to LTCG arising to any person on transfer of bonds. The
department of revenue has said that they will consider indexation benefit if
bond is transferred before maturity and complete capital gains tax exemption at
the time of redemption.
HOW CAN I
BUY IT?
Sovereign Gold Bonds will be issued
on payment of rupees and denominated in grams of gold. Minimum investment in
the bond shall be 1 grams. The bonds can be bought by Indian
residents or entities and is capped at 500 grams.
WHERE CAN I
BUY IT?
Investors can apply for the bonds
through scheduled commercial banks and designated post offices. NBFCs, National
Saving Certificate (NSC) agents and others, can act as agents. They would be
authorised to collect the application form and submit in banks and post
offices.
BSE and NSE are included as receiving offices, apart from the commercial banks, SHCIL, designated post offices
BSE and NSE are included as receiving offices, apart from the commercial banks, SHCIL, designated post offices
WHO IS
ISSUING THE BONDS?
The Bonds are issued by the Reserve Bank of India
on behalf of the Government of India. The bonds are distributed through banks
and designated post offices. This should make subscribing to the bonds an easy
affair. During redemption, "the price of gold may be taken from the
reference rate, as decided, and the Rupee equivalent amount may be converted at
the RBI Reference rate on issue and redemption".
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