Sovereign Gold Bond Scheme 2022-23 सॉवरिन गोल्‍ड बॉन्‍ड योजना 2022-23

S. No.

Tranche

Date of Subscription

Date of Issuance

1.

2022-23- Series I

June 20- June 24, 2022

June 28, 2022

2.

2022-23 Series II

August 22 –August 26, 2022

August 30, 2022

Sl. No.

Item

Details

1

Product name

Sovereign Gold Bond Scheme 2022-23

2

Issuance

To be issued by Reserve Bank of India on behalf of the
Government of India.

3

Eligibility

The SGBs will be restricted for sale to resident
individuals, HUFs, Trusts, Universities and Charitable
Institutions.

4

Denomination

The SGBs will be denominated in multiples of gram(s) of
gold with a basic unit of one gram.

5

Tenor

The tenor of the SGB will be for a period of eight years
with an option of premature redemption after 5 ^th year to be exercised on the date on which
interest is payable.

6

Minimum size

Minimum permissible investment will be One gram of gold.

7

Maximum limit

The maximum limit of subscription shall be 4 KG
forindividual, 4 Kg for HUF and 20 Kg for trusts
andsimilarentities per fiscal year (April-March) notified
by the Governmentfrom time to time. A self-declaration to
this effect will beobtained. The annual ceiling will
include SGBs subscribed under different tranches, and those
purchased from the SecondaryMarket, during the fiscal year.

8

Joint holder

In case of joint holding, the investment limit of 4 KG will
be applied to the first applicant only.

9

Issue price

Price of SGB 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 (IBJA) for the last three working days of the week
preceding the subscription period. The issue price of the
SGBs will be less by ` 50 per gram for the investors who
subscribe online and pay through digital mode.

10

Payment option

Payment for the SGBs will be through cash payment (upto a
maximum of `20,000) or demand draft or cheque or electronic
banking.

11

Issuance form

The SGBs will be issued as Government of India Stock 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.

12

Redemption price

The redemption price will be in Indian Rupees based on
simple average of closing price of gold of 999 purity, of
previous three working days published by IBJA Ltd.

13

Sales channel

SGBs will be sold through Commercial banks, Stock Holding
Corporation of India Limited (SHCIL), Clearing Corporation
of India Limited (CCIL), designated post offices (as may be
notified) and recognised stock exchanges viz.,
National Stock Exchange of India Limited and Bombay Stock
Exchange Limited, either directly or through agents.

14

Interest rate

The investors will be compensated at a fixed rate of 2.50
percent 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. Every
application must be accompanied by the ‘PAN Number’ issued
by the Income Tax Department to individuals and other
entities.

17

Tax treatment

The interest on SGBs 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 is exempted.
The indexation benefits will be provided to long term
capital gains arising to any person on transfer of bond.

18

Tradability

SGBs shall be eligible for trading.

19

SLR eligibility

SGBs acquired by the banks through the process of invoking
lien/hypothecation/pledge alone, shall be counted towards
Statutory Liquidity Ratio.

20

Commission

Commission for distribution of the bond shall be paid at
the rate of one percent of the total subscription received
by the receiving offices and receiving offices shall share
at least 50 percent of the commission so received with the
agents or sub agents for the business procured through
them.