Sovereign Gold Bond Scheme 2021-22 : Procedure for making application for subscription, Eligibility, Interest & Payment Options to Gold Bonds

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 12th May, 2021

G.S.R. 326(E).––In exercise of the powers conferred by clause (iii) of section 3 of the Government Securities Act, 2006 (38 of 2006), the Central Government hereby makes the following Scheme, namely:

1. Short title and commencement.-

(i) This scheme may be called the Sovereign Gold Bond Scheme 2021-22.

(ii) There will be a distinct Series (starting from Series I) for every tranche which will be indicated on the Bond issued to the investor.

(ii)   It shall come into force on the date of its publication in the Official Gazette.

2. Definition.-

In this Scheme, unless the context otherwise requires:

a) “Form” means a form appended to this Scheme;

b) “Receiving office” means the offices or branches of Nationalised Banks, Scheduled Private Banks, Scheduled Foreign Banks (as specified in Annexure I to this Notification), designated Post Offices (as specified in Annexure II to this Notification),Stock Holding Corporation of India Ltd. (SHCIL) and the authorised stock exchanges as specified in Annexure III to this Notification.

c) “Stock Certificate” means the Gold Bond issued in the form of Government of India Stock in accordance

with section 3 of the Government Securities Act, 2006.

3. Eligibility for Investment.-

The Gold Bonds under this Scheme may be held by a Trust, HUFs, Charitable Institution, 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.

Explanation–– For the purposes of this paragraph:

(i) “person” shall have the same meaning as defined in clause (u) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).

(ii) the expression “person resident in India” shall have the same meaning as defined in clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).

(iii) “Trusts” to mean a trust constituted/formed as per the Indian Trusts Act, 1882, or a public or private trust constituted or recognized under the provisions of any Central or State law for the time being in force and also an express or constructive trust constituted for either a public religious or charitable purpose or both which includes a temple, a math, a wakf, a church, a synagogue, anagiary or any other place of public religious worship, or a dharmada or any other religious or charitable endowment and also a society, formed either for a religious or charitable purpose or for both, registered under the Societies Registration Act, 1860 or under any other law for the time being in force in India.

(iv) “Charitable Institution” to mean a Company registered under Section 25 of the Indian Companies Act, 1956 or under Section 8 of the Companies Act, 2013; or an institution, which has obtained a Certificate of Registration as a charitable institution in accordance with a law in force; or Any institution which has obtained a certificate from an Income Tax Authority for the purposes of Section 80G of the Income Tax Act, 1961.

(v) “University” means a university established or incorporated by a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a university for the purposes of the Act.

4. Denomination, Subscription limit and Pricing.––

(i) The bonds will be issued in denominations of one gram of gold or multiples thereof;

Provided that the minimum limit of subscription for the Bonds issued shall be of one gram and maximum limit of subscription per fiscal year shall be of4 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;

Provided that the annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market; and

Provided, further that the ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.

(ii) The nominal value of Gold Bonds shall be 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.

(iii) 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. Procedure for making application for subscription to Gold Bonds–

(i) Any person who is desirous of subscribing to the Gold Bonds shall apply to any receiving office in Form ‘A’ or in any other form as near as thereto, stating clearly the grams of gold, full name and address of the applicant/s.

(ii) Every application shall contain such documents and particulars as specified in the instructions contained in the Application Form.

(iii) Every  application  must  be  accompanied  by  the  ‘PAN  Number’  issued  by  the  Income  Tax Department to Individuals and other entities.

(iv) On  receipt  of  an  application  under  sub  paragraph  (i),  the  receiving  office  shall  issue  an acknowledgment receipt in Form ‘B’, if all requirements of the application are fulfilled.

(v) An incomplete application is liable to be rejected.

6. Date and form of issue of Gold Bonds.––

(i) The Gold Bonds shall be issued on the in the form of a Stock Certificate, as specified in Form ‘C’.

(ii) The Gold Bonds shall be eligible to be converted into Demat form.

7. Period of subscription.-

The Subscription of the Gold Bonds under this Scheme shall be open as specified in Section 8 below.

Provided that the Central Government may, with prior notice, close the Scheme at any time before the period specified above.

8. Calendar of Issuance.-