Tradability in Bonds
The Bonds shall be eligible for trading from the date notified by RBI.
Commission for distribution
Rupee one per hundred of the total subscription. Receiving offices shall share at least 50% of such commission with the agents or sub-agents.
Forms will be received at the branches during banking hours from November 5 to 20, 2015.
Joint holding and nomination
Multiple joint holders and nominees (of first holder) are permitted.
Interest on application money
Interest will be paid at the savings bank rate from the date of realization to the settlement date. Interest has to be credited by EFT to the account of the applicant.
Cancellation of application is permitted till the closure of the issue. Partial cancellation is not permitted. No interest shall be paid if the application is cancelled.
Marking of Lien will be allowed as per the provisions of Government Securities Act, 2006.
Scheduled commercial banks may engage NBFCs, NSC agents and others to collect application forms on their behalf.
Processing through RBI’s e-kuber system
Printing of Holding Certificate
Holding Certificate needs to be printed in colour on A4 size 100 GSM paper.
Servicing and follow up
Receiving offices will “own” the customer and provide necessary services with regards to this bond. They will have to preserve applications till the bonds are matured and repaid.
Based on RBI Circular dt 30/10/15. Updated on 4/11/15. Please visit www.rbi.org.in for any further clarification if required….. Poppy
Saturday, October 31, 2015
Sovereign Gold Bonds-2015-16
Government of India has decided to issue Sovereign Gold Bonds, 2015 with effect from November 05, 2015 to November 20, 2015. The issue may be closed before 20th Nov with prior notice.
The terms and conditions of the issuance of the Bonds shall be as follows:
Who can invest:
A resident Indian in his individual capacity, or on behalf of minor child, or jointly with any other individual.
Form of Security
Will be issued as Government of India Stock. The investors will be issued a Holding Certificate which shall be eligible for conversion into de-mat form.
Date of Issue
The investors can apply in receiving offices from November 05, 2015 to November 20, 2015. However, date of issuance shall be November 26, 2015.
In units of one gram of gold and multiples thereof. Minimum investment shall be 2 grams with a maximum of 500 grams per person per fiscal year. In case of joint holding, the limit applies to the first applicant.
Price shall be fixed in Indian Rupees on the basis of the previous week’s simple average closing price for gold of 999 purity, published by the India Bullion and Jewellers Association Ltd. (IBJA).
2.75% fixed per annum on the amount of initial investment. Interest shall be paid in half-yearly rests and the last interest shall be payable on maturity along with the principal.
Scheduled commercial banks (excluding RRBs) and designated Post Offices.
Payment shall be accepted in Indian Rupees. Cheque or draft should be drawn in favour of the bank / post office, payable at the place where the applications are tendered.
i) Repayable after 8 years from the date of issue. Pre-mature redemption is allowed from fifth year on the interest payment dates.
ii) The redemption price shall be fixed in Indian Rupees on the basis of the previous week’s simple average closing price for gold of 999 purity, published by IBJA.
The receiving office shall inform the investor of the date of maturity of the Bonds, one month before its maturity.
Eligibility for Statutory Liquidity Ratio (SLR)
The investment in the Bonds shall be eligible for SLR.
Loan against Bonds
The Bonds may be used as collateral for loans. The LTV ratio will be as applicable to ordinary gold loan. The lien shall be marked in the depository by the authorized banks.
Interest shall be taxable. Capital gains tax treatment will be the same as that for gold.
Subscription for the Bonds may be made in the prescribed application or in any other form stating clearly the grams of gold and the full name and address of the applicant. The receiving office shall issue an acknowledgment receipt.
Nomination and its cancellation shall be allowed.
The Bonds shall be transferable.