Issuance of calendar for Sovereign Gold Bond Scheme 2021-22

S.No.

Tranche

Date of Subscription

Date of Issuance

1

2021-22 Series VII

October 25 – 29, 2021

November 02, 2021

2

2021-22 Series VIII

November 29- December 03, 2021

December 07, 2021

3

2021-22 Series IX

January 10-14, 2022

January 18, 2022

4

2021-22 Series X

February 28- March 04, 2022

March 08, 2022

Sl. No.

Item

Details

1

Product name

Sovereign Gold Bond 2021-22

2

Issuance

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

3

Eligibility

The Bonds will be restricted for sale to resident
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 after5^thyear to be exercised on the
next interest payment dates.

6

Minimum size

Minimum permissible investment will be 1 gram of gold.

7

Maximum limit

The maximum limit of subscription shall be 4 KG
for individual, 4 Kg for HUF and 20 Kg for trusts
and similar entities per fiscal (April-March) notified by the
Government from time to time. A self-declaration to this
effect will be obtained. The annual ceiling will include
bonds subscribed under different tranches during initial
issuance by Government and those purchased from the
Secondary Market.

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 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 last 3 working days of the week preceding
the subscription period. The issue price of the Gold Bonds
will be `50 per gram less for those who subscribe online
and pay through digital mode.

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 Stock
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
simple average of closing price of gold of 999purity,of
previous 3 working days published by IBJA Ltd.

13

Sales channel

Bonds will be sold through Scheduled Commercial banks,
Stock Holding Corporation of India Limited (SHCIL),
designated post offices (as may be notified), recognised
stock exchanges viz., National Stock Exchange of
India Limited and Bombay Stock Exchange and Clearing
corporation of India Ltd. (CCIL) 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 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.

19

SLR eligibility

Bonds 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 1% of the total subscription received by the
receiving offices 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.