A ninth instalment of the federal government’s Sovereign Gold Bond programme might be accessible for subscription for 5 days, beginning late subsequent month. In the SGB scheme, the Reserve Bank of India (RBI) points bonds linked to the market worth of gold to buyers on behalf of presidency. The Sovereign Gold Bond scheme might be accessible from December 28 to January 1 within the ninth tranche, and for 5 days every within the remaining three tranches this monetary 12 months. Wealth planners say Sovereign Gold Bonds are an efficient method to make use of gold as funding.
— IBJA (@IBJA1919) November 27, 2020
Here’s all it’s essential know concerning the authorities’s Sovereign Gold Bond (SGB) scheme:
Issue Price: The concern worth might be introduced few days earlier than December 28. Currently, gold jewelry charges are close to Rs 48,830 per 10 grams, in keeping with the Mumbai-based India Bullion and Jewellers Association (IBJA), an business physique. (Also Read: Here Is How Sovereign Gold Bond Price Is Calculated)
Important Dates: There might be a complete of 12 tranches this monetary 12 months.
|Tranche||Date of Subscription||Date of Issuance|
|2020-21 Series IX||December 28-January 1, 2021||January 5, 2021|
|2020-21 Series X||January 11-15, 2021||January 19, 2021|
|2020-21 Series XI||February 1-5, 2021||February 9, 2021|
|2020-21 Series XII||March 1-5, 2021||March 9, 2021|
|Source: Ministry of Finance|
Discount: A reduction of Rs 50 per unit is relevant for these investing within the Sovereign Gold Bonds on-line.
Lock-In Period: The gold bonds include a maturity interval of eight years, with an choice to exit after the primary 5 years.
Interest Rate: A hard and fast fee of two.5 per cent each year is relevant on the Sovereign Gold Bond scheme, payable semi-annually. (Also Read: Physical Gold, Gold ETFs Or Gold Bonds: How To Approach Gold?)
Eligible Investors: The scheme is open to resident people, Hindu Undivided Families (HUFs), trusts, universities and charitable establishments.
Investment Limit: Gold bonds could be bought within the multiples of 1 unit, as much as sure thresholds for various buyers. The higher restrict for retail buyers and HUFs is Four kilograms (4,000 items) every per monetary 12 months.
How To Invest: The SGBs are offered via industrial banks, the Stock Holding Corporation, designated put up places of work, and inventory exchanges BSE and NSE. The bonds are held in RBI books or in demat kind.
Tax: The curiosity earned from gold bonds is taxable. However, the capital beneficial properties arising out of redemption are exempted for particular person buyers.