Table of Contents
Introduction- Sovereign Gold Bond (SGB) Scheme 2020
Following are the details of the Sovereign Gold Bonds (SGB) for 2020 (under the Sovereign Gold Bond Scheme. The Sovereign Gold Bonds are considered a decent alternative to buying physical gold.
Dates- Sovereign Gold Bond Scheme (SGB)- 2020
Dates for Sovereign Gold Bond Scheme (SGB)- 2020| Sr. No | Subscription Window | Allotment Date | Tranche |
|---|---|---|---|
| 01 | 13-Jan to 17-Jan-2020 | 21 January 2020 | 2019-20 Series VIII |
| 02 | 03-Feb to 07-Feb 2020 | 11 February 2020 | 2019-20 Series IX |
| 03 | 02-Mar to 06-Mar 2020 | 11 March 2020 | 2019-20 Series X |
| 04 | 20-Apr to 24-Apr 2020 | 28 April 2020 | 2020-21 Series I |
| 05 | 11-May to 15-May 2020 | 19 May 2020 | 2020-21 Series II |
| 06 | 08-Jun to 12-Jun 2020 | 16 June 2020 | 2020-21 Series III |
| 07 | 06-Jul to 10-Jul 2020 | 14 July 2020 | 2020-21 Series IV |
| 08 | 03-Aug to 07-Aug 2020 | 11 August 2020 | 2020-21 Series V |
| 09 | 31-Aug to 04-Sep 2020 | 08 September 2020 | 2020-21 Series VI |
| 10 | 12-Oct to 16-Oct 2020 | 20 October 2020 | 2020-21 Series VII |
| 11 | 09-Nov to 13-Nov 2020 | 18 November 2020 | 2020-21 Series VIII |
| 12 | 28-Dec 2020 to 01 Jan 2021 | 05 January 2021 | 2020-21 Series IX |
FAQs- Sovereign Gold Bond (SGB) 2020
The Bonds under this Scheme may be held by a person resident in India, being an individual, (in his capacity as such individual, or on behalf of minor child, or jointly with any other individual), a Trust, HUFs, Charitable Institution and University.
The investors will be issued a Holding Certificate (Example of Holding Certificate- Form C), which is eligible for conversion into de-mat form.
The Bonds shall be denominated in units of one gram of gold or multiples thereof. Minimum investment in the Bonds shall be one gram with a maximum limit of subscription per fiscal year of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts.
The Issue Price for each tranche of SGB would be different. The nominal value of the Bonds shall be fixed in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity (published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period). The issue price of the Gold Bonds will be Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
The Bonds shall bear interest from the date of issue at the rate of 2.50 percent (fixed rate) per annum on the nominal value. Interest shall be paid in half-yearly rests and the last interest shall be payable along with principal on maturity.
Scheduled Commercial Banks (excluding RRBs, Small Finance Banks and Payment Banks), designated Post Offices (as may be notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are authorised to receive applications for the Bonds either directly or through agents. Your brokerage may also be eligible to apply for SGB on your behalf.
i) The Bonds shall be repayable on the expiration of eight years from the date of issue of the Bonds. Pre-mature redemption of the Bond is permitted after fifth year of the date of issue of the Bonds and such repayments shall be made on the next interest payment date.
ii) The redemption price shall be fixed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of the previous 3 working days, published by the India Bullion and Jewellers Association Limited.
– The Interest received on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961).
– The capital gains tax arising on redemption of SGB to an individual has been exempted.
– The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
Source Information:
(1) https://www.rbi.org.in/Scripts/BS_SwarnaBharat.aspx
(2) https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49665
How much percentage of an individual portfolio can be ideally be invested in Sovereign Gold bond scheme? Considering that the gold price may come down.
Forgot to ask. Since these scheme is continuous and every year, can we say that is very low possibility of price manipulation when the bonds are about to mature?