The Sovereign Gold Bonds will be issued every month from October 2020 to March 2021 as per the calendar specified below, provided that the Central Government may, with prior notice, close the Scheme at any time before the period specified below
| S. No |
Tranche |
Date of Subscription |
Date of Issuance |
| 1 |
SGB 2020-21 Series VII
|
October 12-16, 2020
|
October 20, 2020
|
|
2
|
SGB 2020-21 Series VIII
|
November 09-13, 2020
|
November 18, 2020
|
|
3
|
SGB 2020-21 Series IX
|
December 28, 2020-January 01,2021
|
January 05, 2021
|
|
4
|
SGB 2020-21 Series X
|
January 11-15, 2021
|
January 19, 2021
|
|
5.
|
SGB 2020-21 Series XI
|
February 01-05, 2021
|
February 09, 2021
|
|
6.
|
SGB 2020-21 Series XII
|
March 01- 05, 2021
|
March 09, 2021
|
Eligibility for Investment:
The Gold Bonds under this scheme may be held by a Trust, HUFs, Charitable Institutions, University or 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.
Form of Security:
The Gold Bonds shall be issued in the form of Stock Certificate, as specified in Form ‘C’.
The Gold Bonds shall be eligible to be converted into Demat form.
Applications:
Application form from investors will be received at Branches during normal banking hours on the weeks of subscription.
Date of Issue:
The date of issuance shall be as per the details given above.
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 (April-March) 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
Issue price:
The issue price for SGB-Series-2020-21-Series-XI is Rs 4,912/- per Gram and GOI in consultation with RBI has decided to offer a discount of Rs. 50/- per gram less than the nominal value for the investors applying online. For such investors, the issue price will be Rs 4,862/- per gram.
Interest:
The Bonds shall bear interest from the date of issue at the rate of 2.5 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.
Redemption:
The Bonds shall be repayable on the expiration of eight years from the date of issue of the Bonds. Pre-mature redemption of the Bond is permitted after fifth year of the date of issue of the Bonds and such repayments shall be made on the next interest payment date.
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 the previous 3 working days, published by the India Bullion and Jewelers Association Limited.
RBI/depository shall inform the investor about the date of maturity of the Bond one month before its maturity.
*The loan against SGBs would be subject to decision of the lending bank/institution, and cannot be inferred as a matter of right by the SGB holder.
Tax Treatment
Interest on the Bonds shall 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 term capital gains arising to any person on transfer of bond.
Joint Holding and Nomination
Multiple Joint holders and nominees (of first holder) are permitted. In case of joint holding, the investment limit of -4- Kgs will be applied to the first applicant only.
Nomination of and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively.
- An individual Non - resident Indian may get the security transferred in his name on account of his being a nominee of a deceased investor provided that:
the Non-Resident investor shall need to hold the security till early redemption or till maturity; and
- The interest and maturity proceeds of the investment shall not be repatriable.
Transferability
The Bonds issued in the form of Stock Certificate shall be transferable by execution of an Instrument of transfer as in Form ‘F’.
Tradability:
The Bonds shall be eligible for trading on date notified by the Reserve Bank of India. (It may be noted that only bonds held in Demat form with depositories can be traded in Stock Exchanges)
Know-Your-Customer (KYC) requirements:
Every application must be accompanied by the ‘PAN details’ issued by the Income Tax Department to the investors (individuals and other entities). KYC Documents such as Voter ID, Aadhaar Card/PAN or TAN/Passport will be required.
Cancellation:
Cancellation of application permitted till the closure of the issue, i.e. until Friday of the particular week of subscription. Part cancellation of submitted request for purchase of gold bonds is not permitted.
Lien Marking:
As the bonds are government securities, lien marking etc. will be as per the extant legal provisions of Government Securities Act, 2006 and rules framed there under.
All branches of Bank of Baroda in India are authorized to issue SGB.