Sovereign Gold Bond Scheme (SGB) 2019-20- Series I/II/III/IV
The terms and conditions of the issuance of the Bonds shall be as follows:
1. Eligibility for Investment:The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. The bond may also be held by a Trust, HUFs, Charitable Institution and University. “Person resident in India”.
2. Form of SecurityThe Bonds shall be issued in the form of Government of India Stock in accordance with section 3 of the Government Securities Act, 2006. The investors will be issued a Holding Certificate (Form C). The Bonds shall be eligible for conversion into de-mat form.
3.Denomination
The Bonds shall be denominated in units of one gram of gold or multiples thereof. Minimum investment in the Bonds shall be one gram with a maximum limit of subscription per fiscal year of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time
provided that
- in case of joint holding, the above limits shall be applicable to the first applicant only;
- annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market; and
- the ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.
4Issue PriceThe nominal value of the Bonds shall be fixed in Indian Rupees fixed 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 last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
5.Calendar of Issuance.-
| S.No. | Tranche | Date of Subscription | Date of Issuance |
| 1 | 2019-20 Series I | June 03-07, 2019 | June 11, 2019 |
| 2 | 2019-20 Series II | July 08-12, 2019 | July 16, 2019 |
| 3 | 2019-20 Series III | August 05-09, 2019 | August 14, 2019 |
| 4 | 2019-20 Series IV | September 09-13, 2019 | September 17, 2019 |
6.Interest
The Bonds shall bear interest from the date of issue at the rate of 2.50 percent (fixed rate) per annum on the nominal value. Interest shall be paid in half-yearly rests and the last interest shall be payable along with principal on maturity.
Know more : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11568&Mode=0
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