The government will issue two new tranches of the Sovereign Gold Bonds (SGB) in collaboration with the Reserve Bank of India for 2023-24
The first tranche will be available for subscription from June 19-23 and the second tranche will be available from September 11-15
The Gold Bonds issued by the government can be opened by a trust, HUF, charitable institution, university, or an individual resident in India. Individuals can also invest on behalf of a minor child, or jointly with any other persons
SGBs, or Sovereign Gold Bonds, are issued by the RBI on behalf of the Centre as an alternative to buying physical gold
The SGBs will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges -- National Stock Exchange of India Limited and Bombay Stock Exchange Limited
The bond maturity period is 8 years, though investors have an option of premature redemption after 5th year to be exercised on the date on which interest is payable
The interest on the Gold Bonds will be paid at a fixed rate of 2.50 per cent a year on the nominal value of the bond beginning on the day of issue. The interest shall be paid in half-yearly installments, with the final interest payable along with the principle at maturity
The interest on the Gold Bond is taxable under the rules of the Income-tax Act of 1961 (43 of 1961). The capital gains tax on redemption of these bonds to a person is waived
Minimum permissible investment will be 1 gram of gold. 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 year (April-March), as notified by the government from time to time
The price of SGB will be fixed in Indian rupees on the basis of simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period