Sovereign Gold Bond Scheme
Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds. Sovereign Gold Bonds Scheme is government securities denominated in grams of gold and can be substitutes for holding physical gold. The Bond is issued by the Reserve Bank of India on behalf of the Government of India. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz.
The Exchange has received approval from the Reserve Bank of India (RBI) for acting as a Receiving Office for the Sovereign Gold Bond (SGB) Issuance. Exchange will collect bids from members for their client for the SGB Issuance. With an objective to facilitate orderly collection of bids through Stock Exchange mechanism, an online bid collection facility shall be available to trading members on existing web based E-IPO platform.
Safest: Zero risk of handling physical gold
Earn Interest: 2.50% assured interest per annum on the issue price
- No TDS applicable on interest
- Indexation benefit if bond is transferred before maturity
- Capital gain tax exempt on redemption
Assurance of Purity: Gold bond prices are linked to price of gold of 999 purity (24 carat) published by IBJA.
Sovereign Guarantee: Both on redemption amount and on the interest