The Government of India (GOI) in consultation with Reserve Bank of India (RBI) on Thursday has decided to issue Sovereign Gold Bonds (SGBs). The date for subscription for 2023-24 Series I is June 19-23, 2023, while the date issuance is June 27, 2023. The date for subscription for Series II is Sept. 11-15, 2023 while the date of issuance is September 20, 2023.
Sovereign Gold Bond Scheme 2023-24: Eligibility,
The SGBs will be limited for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.
Sales Channel
The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Sovereign Gold Bond Scheme 2023-24: Denomination, Tenor
Denomination
The SGBs will be issued in denominations that are multiples of grams of gold, with the basic unit being one gram.
Tenor
These bonds will have a maturity period of eight years, and investors will have the option to redeem them prematurely after the fifth year, which can be exercised on the interest payment date.
Sovereign Gold Bond Scheme 2023-24: Size, Limit, Holders
Minimum
The minimum investment allowed will be one gram of gold. However, there are maximum limits on subscription depending on the type of investor.
Maximum
For individuals, the maximum limit is 4 kg per fiscal year (April-March). The same limit applies to Hindu Undivided Families (HUFs). Trusts and similar entities have a higher maximum limit of 20 kg per fiscal year. These limits are subject to any notifications issued by the Government from time to time.
Joint Holder
To ensure compliance with these limits, investors will be required to provide a self-declaration stating their eligibility at the time of application for subscription. The annual ceiling includes the total amount of SGBs subscribed under different tranches, as well as those purchased from the secondary market, during the fiscal year. In the case of joint holdings, the investment limit of 4 kg will be applied to the first applicant only.
Sovereign Gold Bond Scheme 2023-24: Price, Payment
Issue Price
The issue price of SGBs will be determined based on the simple average of the closing prices of gold with a purity of 999, as notified by the India Bullion and Jewellers Association Limited (IBJA). This average will be calculated using the closing prices for the last three working days of the week prior to the subscription period. For investors who choose to subscribe online and make payment through digital mode, the issue price of the SGBs will be reduced by Rs 50 per gram.
Redemption Price
The redemption price of SGB will be determined in Indian Rupees, taking into account the simple average of the closing price of gold with a purity of 999 for the three preceding working days. These prices will be published by IBJA Ltd.
Payment Mode
Payment for the SGBs can be made through various methods including cash (up to a maximum of Rs 20,000), demand draft, cheque, or electronic banking.
Sovereign Gold Bond Scheme 2023-24: Issuance
The Government of India will issue SGB under Government Securities Act, 2006. The investors will be issued a Certificate of Holding for the same. The SGBs will be eligible for conversion into demat form.
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