Sovereign Gold Bond 2023-24 Series IV: The 2023-24 Series IV sovereign gold bonds will be open for public subscription for five days from February 12 to February 16, 2024, with an issuance date of February 21, 2024.
SGB 2023-24 Series III will be open for subscription in December 2023.
“SGB will sell shares issued by the Ministry of Finance of India through scheduled commercial banks (other than small finance banks, payments banks and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices and recognized stocks. A statement said: “The exchanges, namely National Stock Exchange of India Limited and Bombay Stock Exchange Limited. “
Sovereign Gold Bonds 2023-24: Who is eligible to buy?
The SGBs will be issued by the Reserve Bank of India on behalf of the government and will be sold only to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charities, the statement said.
Sovereign Gold Bonds 2023-24: Prices, Interest Rate Returns
Once issued, SGB investors will be compensated at a fixed interest rate of 2.50% per annum, payable semi-annually at par.
The price of SGB will be determined in Indian rupees based on the simple average of the closing price of 999 fine gold published by the Indian Bullion and Jewelers Association Ltd. (IBJA) for the past three working days in the preceding week. Subscription period. For investors who subscribe online and pay digitally, the issue price of SGB will be reduced by Rs 50 per gram.
Mode of payment to SGB is cash (up to Rs. 20,000) or demand draft, check or e-banking.
Sovereign Gold Bonds 2023-24: Minimum Investment
The minimum investment allowed is 1 gram of gold and the maximum subscription limit is 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities, as notified by the government from time to time every financial year (April to March). .
The bond will be priced in multiples of grams of gold, with a basic unit of one gram, and a term of eight years, with an early redemption option exercisable on the interest payment date after the fifth year.
A self-declaration in this regard will be obtained. The annual cap will include SGBs subscribed in different tranches during the financial year as well as SGBs purchased from the secondary market.
“SGB will be issued as Government of India shares under the Government Securities Act, 2006. Investors will be issued holding certificates for the shares. SGB will be eligible for conversion into demat form,” the ministry said.
Sovereign Gold Bonds 2023-24: Redemption
The redemption price will be based on Indian Rupees and will be calculated based on the simple average of the closing prices of 999 fine gold published by IBJA Ltd for the preceding three working days.
Sovereign Gold Bonds 2023-24: Can they be used as loan collateral?
The bond can be used as collateral for a loan. The loan-to-value (LTV) ratio will be equal to ordinary gold loans as prescribed by the Reserve Bank from time to time, the Finance Ministry said in a statement.
Sovereign Gold Bonds 2023-24: Income Tax Applicability
“Interest on SGBs is taxable under the provisions of the Income Tax Act, 1961 (43 of 1961). Capital gains tax arising on redemption of SGBs to individuals is exempt. Indexation gains will be made available to any person arising on transfer of bonds over a long period of time Capital Gains. SGB shall be eligible for trading,” it added.
How to buy Sovereign Gold Bonds (SGB) online?
step 1: First log in to your respective online banking account.
Step 2: From the main menu, select Electronic Services and click Sovereign Gold Bonds.
Step 3: For new customers, please select “Register”. Then read the terms and conditions laid down by the Reserve Bank of India (RBI) and proceed.
Step 4: Enter all required SGB scheme details and information about depositing participants from CDSL or NSDL, depending on where your demat account is hosted.
Step 5: Submit the online registration form.
Step 6: Once registered, select the purchase option from the header link/section or simply select “Buy”.
Step 7: Enter your subscription number and nominator details.
Step 8: To complete the process, enter the one-time password (OTP) sent to your registered mobile number.
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