Reserve Bank of India
06:39
Showing posts with label bonds. Show all posts
Showing posts with label bonds. Show all posts
Monday, 28 December 2020
Saturday, 6 June 2020
ministry of Finance
07:03
Sovereign Gold Bond Scheme 2020-21 (Series III) – Issue Price
Sovereign Gold Bond Scheme 2020-21 (Series III) – Issue Price
Ministry of Finance
Sovereign Gold Bond Scheme 2020-21 (Series III) – Issue Price
Posted On: 05 JUN 2020 9:14PM by PIB Delhi
In terms of the Government of India Notification No. F.No. 4(4)-B/(W&M)/2020 dated April 13, 2019, Sovereign Gold Bonds 2020-21 (Series III) will be opened for the period June 08-12, 2020 with Settlement date June 16, 2020. The issue price of the Bond during the subscription period shall be Rs 4,677 (Rupees Four thousand Six hundred Seventy seven only) – per gram, as also published by RBI in their Press Release dated June 05, 2020.
The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 4,627 (Rupees Four thousand Six hundred twenty seven only) per gram of gold.
Source:PIBNEWS
Saturday, 18 April 2020
Saturday, 30 November 2019
GOLD
06:21
Sovereign Gold Bond Scheme 2019-20 (Series VII) – Issue Price
Sovereign Gold Bond Scheme 2019-20 (Series VII) – Issue Price
Posted On: 29 NOV 2019 7:43PM by PIB Delhi
In terms of the Government of India Notification No. F. No. 4(7)-B(W&M)/2019 dated September 30, 2019, Sovereign Gold Bonds 2019-20 (Series VII) will be opened for the period December 02-06, 2019. The issue price of the Bond during this subscription period shall be Rs 3,795 (Rupees Three Thousand Seven Hundred Ninety Five only) – per gram with Settlement date December 10, 2019, as also published by RBI in their Press Release dated November 29, 2019.
The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 3,745 (Rupees Three Thousand Seven Hundred Forty Five only) per gram of gold.
Source:PIBNEWS
Sunday, 13 January 2019
Saturday, 2 December 2017
Reserve Bank of India
09:14
GOI Series-III Sovereign Gold Bonds – next Subscription period – December 4-6 2017
GOI Series-III Sovereign Gold Bonds – next Subscription period – December 4-6 2017
Issue price shall be Rs2,952 per gram with Settlement on December 11, 2017.
The Government of India, in consultation with the Reserve Bank of India (RBI), had floated Series III of Sovereign Gold Bonds 2017-18, for the period from October 09, 2017 to December 27, 2017 (with subscription period Monday to Wednesday every week). The Bonds will be issued on the succeeding Monday after each subscription period.
For the next subscription period i.e. December 4 - 6, 2017, the issue price shall be Rs2,952 (Rupees Two thousand Nine hundred Fifty Two only) – per gram with Settlement on December 11, 2017, as also published by RBI in their Press Release dated November 30, 2017.
The Government of India in consultation with the Reserve Bank of India (RBI),has decided to allow discount of Rs 50 (Rupees Fifty) per gram from the issue price to those investors who apply online and the payment is made through digital mode.
Source:PIBNEWS
Sunday, 8 October 2017
TAXES
10:15
Sovereign Gold Bond Scheme
Sovereign Gold Bond Scheme
RBI/2017-18/71
IDMD.CDD.No.929/14.04.050/2017-18
October 06, 2017
The Chairman & Managing Director
All Scheduled Commercial Banks,
(Excluding RRBs)
Designated Post Offices
Stock Holding Corporation of India Ltd.(SHCIL)
National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd.
Dear Sir/Madam,
Sovereign Gold Bond Scheme
Government of India has vide its Notification F.No. 4(25)-B/(W&M)/2017 dated October 06, 2017 announced that the Sovereign Gold Bond Scheme. Under the scheme SGBs (The Bonds) will be issued in a series of weekly issuances which will be open for subscription from Monday to Wednesday of every week starting from October 09, 2017. The Government of India may, with prior notice, close the Scheme before the specified period. 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, Charitable Institution and University. “Person resident in India” is defined under section 2(v) read with section 2(u) of the Foreign Exchange Management Act, 1999
2. Form of Security
The 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. Date of Issue
The bond shall be issued on the first business day of next week for the applications received during a given week.
4. Calendar of Issuance:
The Sovereign Gold Bonds will be issued every week from October 2017 to December 2017 as per the calendar specified below:
S.No Period of Subscription Date of issuance
1. October 09-11, 2017 October 16, 2017
2. October 16-18, 2017 October 23, 2017
3. October 23-25, 2017 October 30, 2017
4. October 30-November 01, 2017 November 06, 2017
5. November 06-08, 2017 November 13, 2017
6. November 13-15, 2017 November 20, 2017
7. November 20-22, 2017 November 27, 2017
8. November 27-29, 2017 December 04, 2017
9. December 04-06, 2017 December 11, 2017
10. December 11-13, 2017 December 18, 2017
11. December 18-20, 2017 December 26, 2017
12. December 26-27, 2017 January 01, 2017
5. Denomination
The Bonds shall be denominated in units of one gram of gold and multiples thereof. Minimum investment in the Bonds shall be one gram with a maximum limit of subscription 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 per fiscal year (April – March), provided that
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.
6. Issue Price
Price of the Bonds shall 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 Jewelers Association Limited for the last three business 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 paid through digital mode.
7. Interest
The Bonds shall bear interest at the rate of 2.50 percent (fixed rate) per annum on the amount of initial investment. Interest shall be paid in half-yearly rests and the last interest shall be payable on maturity along with the principal.
8. Receiving Offices
Scheduled Commercial Banks (excluding RRBs), designated Post Offices (as may be notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are authorized to receive applications for the Bonds either directly or through agents.
9. Payment Options
Payment shall be accepted in Indian Rupees through cash up to a maximum of ₹ 20,000/- or Demand Drafts or Cheque or Electronic banking. Where payment is made through cheque or demand draft, the same shall be drawn in favour of receiving office.
10. Redemption
i) The Bonds shall be repayable on the expiration of eight years from the date of issue of Gold bonds. Pre-mature redemption of the Bond is permitted from fifth year of the date of issue on the interest payment dates.
ii) The redemption price shall be fixed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited. The receiving office shall inform the investor of the date of maturity of the Gold Bond one month before its maturity.
11. Repayment
RBI/depository shall inform the investor of the date of maturity of the Bond one month before its maturity.
12. Eligibility for Statutory Liquidity Ratio (SLR)
The holding of these Bonds by banks as collateral shall be counted towards Statutory Liquidity Ratio holding.
13. Loan against Bonds
The Bonds may be used as collateral for loans. The Loan to Value ratio will be as applicable to ordinary gold loan mandated by the RBI from time to time. The lien on the Bonds shall be marked in the depository by the authorized banks.
14. Tax Treatment
Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 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 transfer of bond
15. Applications
Subscription for the Bonds may be made in the prescribed application form (Form ‘A’) or in any other form as near as thereto stating clearly the grams of gold and the full name and address of the applicant. The receiving office shall issue an acknowledgment receipt in Form ‘B’ to the applicant.
16. Nomination
Nomination and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated December 1, 2007.
17. Transferability
The Bonds shall be transferable by execution of an Instrument of transfer as in Form ‘F’, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated December 1, 2007.
18. Tradability of bonds
The Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.
19. Commission for distribution
Commission for distribution shall be paid at the rate of rupee one per hundred of the total subscription received by the receiving offices on the applications received 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.
20. All other terms and conditions specified in the notification of Government of India in the Ministry of Finance (Department of Economic Affairs) vide number F. No.4(13) W&M/2008, dated 8th October 2008 shall apply to the Bonds.
21. Operational guidelines relating to Sovereign Gold Bonds are issued vide circular IDMD.CDD.No.927/14.04.050/2017-18 dated October 06, 2017.
Yours faithfully,
(Shyni Sunil)
Deputy General Manager
Encls.: As above.
Friday, 7 July 2017
Reserve Bank of India
09:11
APPLICATION FOR THE BOND:SOVEREIGN GOLD BOND SCHEME 2017-18
APPLICATION FOR THE BOND:SOVEREIGN GOLD BOND SCHEME 2017-18
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.
Government 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., 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 behalf 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.
|
5
|
Tenor
|
The
tenor of the Bond will be for a period of 8 years with exit option from 5th 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 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
|
Price
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
|
Payment
for the Bonds will be through cash payment (upto a maximum of Rs. 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 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), designated 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
|
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 card/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 transfer 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
|
Source:PIBNEWS
Tuesday, 13 June 2017
Saturday, 22 April 2017
Reserve Bank of India
17:42
Sovereign Gold Bond Scheme 2017 -18 - Series I - Issue Price
Sovereign Gold Bond Scheme 2017-18 - Series I - Issue Price
Date : Apr 21, 2017
Sovereign Gold Bond Scheme 2017 -18 - Series I - Issue Price
In terms of GoI notification F. No. 4(8) - W&M/2017 and RBI circular IDMD.CDD.No.2760/14.04.050/2016-17 dated April 20, 2017, the Sovereign Gold Bond Scheme 2017-18 - Series I will be opened for subscription for the period from April 24, 2017 to April 28, 2017. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the week preceding the subscription period, i.e. April 17-21, 2017 works out to ₹ 2951/- per gram. Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹ 50 per gram on the nominal value of the Sovereign Gold Bond. Hence, the issue price of Gold Bond for this tranche has been fixed at ₹ 2901 /- (Rupees Two Thousand Nine Hundred One only) per gram of gold.
Ajit Prasad
Assistant Adviser
Press Release : 2016-2017/2863
Source:RBI
Wednesday, 5 April 2017
yes bank
07:36
YES BANK RECEIVES ICRA AA (HYB) RATING FROM ICRA FOR BASEL III AT1 BONDS OF INR 3,000 CRORE
YES BANK RECEIVES ICRA AA (HYB) RATING FROM ICRA FOR BASEL III AT1 BONDS OF INR 3,000 CRORE
Mumbai, March 27, 2017:
YES BANK, India’s 5th largest private sector Bank has announced that it has received rating of ICRA AA (hyb) with Stable Outlook from ICRA ratings for INR 3,000 Crores of Basel III Compliant AT1 (Additional Tier-1) Bonds. The detailed rating rationale is available at: LINK
YES BANK’s AT-1 Bond is already rated CARE AA with Stable Outlook from CARE Ratings and Ind AA with Stable Outlook from India Ratings & Research (a Fitch Group Company).
Also, ICRA has upgraded YES BANK’s INR 280 Crore Issue of Basel III AT1 Bonds from ICRA A+ (hyb) to ICRA AA (hyb). The detailed rating rationale is available at: LINK
Source:URL
Thursday, 3 November 2016
Reserve Bank of India
23:31
Banks can now issue masala bonds: RBI
Banks can now issue masala bonds: RBI
MUMBAI: Indian banks can raise Tier I, Tier II and funds for lending to the infrastructure sector by issuing rupee denominated masala bonds within the Rs 2.44 lakh crore foreign investment ceiling for corporate bonds, Reserve Bank of India said in a notification on Thursday.
Banks can raise perpetual debt which qualifies as Tier I capital through rupee denominated bonds overseas. They can also raise long term funds to finance infrastructure and affordable housing projects in India, the central bank said. Tier I capital is the core capital of the bank is used to gauge a bank’s capability of absorbing losses
On Thursday, RBI just notified the measures announced for the bond market in August which included allowing banks to issue masala bonds.
Until now these bonds could only be issued by companies and NBFCs. These bonds are different from other overseas instruments because the currency risk is borne by the investor.
Source:Economic Times
Saturday, 29 October 2016
public sector banks
06:51
Four PSBs may struggle to pay AT1 bond coupons
Four PSBs may struggle to pay AT1 bond coupons
Four public sector banks (PSBs) may struggle to make coupon payments on their additional tier 1 (AT1) bond as they have reported heavy losses due to a surge in bad loans. In this case coupon payment is an annual interest paid on the face value of a bond. It is expressed as a percentage. AT1 bond is issued under Basel III capital regulations. Why PSBs finding difficult to pay them? The main reasons that may affect ability of PSBs to pay coupon on AT1 bonds are decline in profitability and increasing losses that may wipe out their revenue reserves. Government’s position Union Government has committed capital support to these PSBs on the coupon on AT1 bonds. However, this support can only be serviced through PSBs current year’s profit or from revenue reserves. Thus, any capital infusion by the government alone cannot help the banks to service coupon on these bonds. What are Additional Tier 1 (AT1) Bonds? AT1 bonds are the hybrid bonds that combine debt and equity elements. They are also called as contingent convertible capital instruments (CoCos). AT1 or Cocos bonds have their roots in financial crisis when governments were forced to bail out banks. They are the riskiest debt issued by banks and do not have any set maturity date. The defining characteristic of AT1 or Cocos bond is that it may be converted into shares when certain conditions are met. For example, when a company runs into trouble, the owners lose their stake and the debt becomes equity, lenders turns into owners. But in case of banks such negotiations are not possible. The coco bonds are designed to anticipate that process and transform automatically from debt to equity.
Source:Currentaffairs
Thursday, 27 October 2016
Reserve Bank of India
07:21
36 Things You Should Know About Sovereign Gold Bond
36 Things You Should Know About Sovereign Gold Bond
1. What is Sovereign Gold Bond (SGB)? Who is the issuer?
SGBs are government securities denominated in grams of gold.
They are substitutes for holding physical gold. Investors have to pay the issue
price in cash and the bonds will be redeemed in cash on maturity. The Bond is
issued by Reserve Bank on behalf of Government of India.
2. Why should I buy SGB rather than physical gold? What are the
benefits?
The quantity of gold for which the investor pays is protected,
since he receives the ongoing market price at the time of redemption/ premature
redemption. The SGB offers a superior alternative to holding gold in physical
form. The risks and costs of storage are eliminated. Investors are assured of
the market value of gold at the time of maturity and periodical interest. SGB
is free from issues like making charges and purity in the case of gold in
jewellery form. The bonds are held in the books of the RBI or in demat form
eliminating risk of loss of scrip etc.
3. Are there any risks in investing in SGBs?
There may be a risk of capital loss if the market price of gold
declines. However, the investor does not lose in terms of the units of gold
which he has paid for.
4. Who is eligible to invest in the SGBs?
Persons resident in India as defined under Foreign Exchange Management
Act, 1999 are eligible to invest in SGB. Eligible investors include
individuals, HUFs, trusts, universities, charitable institutions, etc.
5. Whether joint holding will be allowed?
Yes, joint holding is allowed.
6. Can a Minor invest in SGB?
Yes. The application on behalf of the minor has to be made by
his/her guardian.
7. Where can investors get the application form?
The application form will
be provided by the issuing banks/SHCIL offices/designated Post Offices/agents.
It can also be downloaded from the RBI’s website. Banks may also provide online
application facility.
8. What are the Know-Your-Customer (KYC) norms?
Know-Your-Customer (KYC) norms will be the same as that for
purchase of physical form of gold. Identification documents such as Aadhaar
card/PAN or TAN /Passport / Voter ID card will be required. KYC will be done by
the issuing banks/SHCIL offices/Post Offices/agents. No separate KYC will be
needed for receiving bank’s own customers.
9. What is the minimum and maximum limit for investment?
The Bonds are issued in denominations of one gram of gold and in
multiples thereof. Minimum investment in the Bond shall be one gram with a
maximum buying limit of 500 grams per person per fiscal year (April – March).
In case of joint holding, the limit applies to the first applicant.
10. Can I buy 500 grams in the name of each of my family
members?
Yes, each family member can buy the bonds in his/her own name if
they satisfy the eligibility criteria as defined at Q No.4.
11. Can I buy 500 grams worth of SGB every year?
Yes. One can buy 500 grams worth of gold every year as the
ceiling has been fixed on a fiscal year (April-March) basis.
12. What is the rate of interest and how will the interest be
paid?
The Bonds bear interest at the rate of 2.75 per cent (fixed
rate) per annum on the amount of initial investment. Interest will be credited
semi-annually to the bank account of the investor and the last interest will be
payable on maturity along with the principal.
13. Who are the authorized agencies selling the SGBs?
Bonds are sold through scheduled commercial banks (excluding
RRBs), SHCIL offices and designated Post Offices either directly or through
their agents.
14. If I apply, am I assured of allotment?
If the customer meets the eligibility criteria, produces a valid
identification document and remits the application money on time, he/she will
receive the allotment.
15. When will the customers be issued Holding Certificate?
The customers will be issued Certificate of
Holding on the date of issuance of the SGB. Certificate of
Holding can be collected from the issuing banks/SHCIL offices/Post
Offices/agents or obtained directly from RBI on email, if email address is
provided in the application form.
16. Can I apply online?
Yes. A customer can apply online through the website of the
listed scheduled commercial banks.
17. At what price the bonds are sold?
Price of bond will be fixed in Indian Rupees on the basis of the
previous week’s (Monday – Friday) simple average price for gold of 999 purity
published by the India Bullion and Jewellers’ Association Ltd. (IBJA). The
issue price will be disseminated by the Reserve Bank of India
18. Will RBI publish the rate of gold applicable every day?
The price of gold for the relevant tranche will be published on
RBI website two days before the issue opens.
19. What will I get on redemption?
On maturity, the redemption proceeds will be equivalent to the
prevailing market value of grams of gold originally invested in Indian Rupees.
The redemption price will be based on the simple average of previous week’s
(Monday-Friday) closing gold price for 999 purity published by the IBJA.
20. How will I get the redemption amount?
Both interest and redemption proceeds will be credited to the
bank account furnished by the customer at the time of buying the bond.
21. What are the procedures involved during redemption?
·
The investor will be advised one month before maturity regarding
the ensuing maturity of the bond.
·
On the date of maturity, the maturity proceeds will be credited
to the bank account as per the details on record.
·
In case there are changes in any details, such as, account
number, email ids, then the investor must intimate the bank/SHCIL/PO promptly.
22. Can I encash the bond anytime I want? Is premature
redemption allowed?
Though the tenor of the bond is 8 years, early
encashment/redemption of the bond is allowed after fifth year from the date of
issue on coupon payment dates. The bond will be tradable on Exchanges, if held
in demat form. It can also be transferred to any other eligible investor.
23. What do I have to do if I want to exit my investment?
In case of premature redemption, investors can approach the
concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon
payment date. Request for premature redemption can only be entertained if the
investor approaches the concerned bank/post office at least one day before the
coupon payment date. The proceeds will be credited to the customer’s bank
account provided at the time of applying for the bond.
24. Can I gift the bonds to a relative or friend on some
occasion?
The bond can be gifted/transferable to a relative/friend/anybody
who fulfills the eligibility criteria (as mentioned at
Q.no. 4). The Bonds shall be transferable in accordance with the
provisions of the Government Securities Act 2006 and the Government Securities
Regulations 2007 before maturity by execution of an instrument of transfer
which is available with the issuing agents.
25. Can I use these securities as collateral for loans?
Yes, these securities are eligible to be used as collateral for
loans from banks, financial Institutions and Non-Banking Financial Companies
(NBFC). The Loan to Value ratio will be the same as applicable to ordinary gold
loan prescribed by RBI from time to time.
26. What are the tax implications on i) interest and ii) capital
gain?
Interest on the Bonds will be taxable as per the provisions of
the 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 terms capital gains arising to any person on transfer
of bond.
27. Is tax deducted at source (TDS) applicable on the bond?
TDS is not applicable on the bond. However, it is the
responsibility of the bond holder to comply with the tax laws.
28. Who will provide other customer services to the investors
after issuance of the bonds?
The issuing banks/SHCIL offices/Post Offices/agents through
which these securities have been purchased will provide other customer services
such as change of address, early redemption, nomination, grievance redressal,
transfer applications etc.
29. What are the payment options for investing in the Sovereign
Gold Bonds?
Payment can be made through cash (upto Rs. 20000)/cheques/demand
draft/electronic fund transfer.
30. Whether nomination facility is available for these
investments?
Yes, nomination facility is available as per the provisions of
the Government Securities Act 2006 and Government Securities Regulations, 2007.
A nomination form is available along with Application form.
31. Is the maximum limit of 500 gms applicable in case of joint
holding?
The maximum limit will be applicable to the first applicant in
case of a joint holding for that specific application.
32. Are institutions like banks allowed to invest in Sovereign
Gold Bonds?
There is no bar on investment by banks in Sovereign Gold Bonds.
These will qualify for SLR.
33. Can I get the bonds in demat form?
·
Yes. The bonds can be held in demat account. A specific request
for the same must be made in the application form itself.
·
Till the process of dematerialization is completed, the bonds
will be held in RBI’s books. The facility for conversion to demat will also be
available subsequent to allotment of the bond.
34. Can I trade these bonds?
The bonds are tradable from a date to be notified by RBI. (It
may be noted that only bonds held in de-mat form with depositories can be
traded in stock exchanges) The bonds can also be sold and transferred as per
provisions of Government Securities Act, 2006
35. Can I get part repayment of these bonds at the time of
exercising put option?
Yes, part holdings can be redeemed in multiples of one gm.
36. How do I contact RBI to address my queries regarding
Sovereign Gold Bond ?
A dedicated e-mail has
been created by the Reserve Bank of India to receive queries from members of
public on Sovereign Gold Bonds. Investors can mail their queries to this email
id.
Source:RBI
