Issue Details
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Date of Issue
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1st September 2016 to 9th September 2016
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Denomination
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Units of 1 gram of Gold and in multiples thereof
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Forms of Bond
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Physical & Demat (Certificate of holding)
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Date of Allotment
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23rd September 2016
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Eligibility
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The Bonds will be restricted for sale to resident Indian entities including Individuals, HUFs, Trusts, Universities and Charitable Institutions. NRIs Cannot invest.
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Minimum Investment
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Rs.3,150/- (Rs. 3,1510 * 1 Grams) (Rupees Three Thousand One Hundred and Fifty only) per gram of gold.
The rate has been fixed on the basis of simple average of closing price of gold of 999 purity for the week August 22 to 26, 2016 as published by the “India Bullion and Jewelers Association Ltd. (IBJA)”.
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Maximum Investment
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Rs. 15,75,000/- ( Rs. 3,150 * 500 Grams)
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Issue Price
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Rs 3,150/-
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Interest
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2.75 p.a. (Semiannual) on the amount of initial investment.
Post Maturity Interest is Not Payable.
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Tenor
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8 years with exit option in 5th, 6th and 7th years
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Joint holder
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In case of joint holding, the investment limit of 500 grams will be applied to the first applicant only.
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Redemption
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Loan Facility
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The bonds may be used as a Collateral for loans
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Tax Treatment
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The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961) and the capital gains tax exempt on redemption.
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Nomination
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The sole Holder or maximum of two persons as nominee.
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Advantages of Sovereign Gold Bonds
- Superior alternative to holding gold in physical form.
- Risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest.
- No issues like making charges and purity in the case of gold in jewellery form.
- Held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.
We would like to highlight that investors who had invested in the earlier tranches have gained approximately 17.36% (Tranche 1), 21.15% (Tranche 2) & 8.02% (Tranche III) respectively. Further, any capital gains arising from redemption during the buy-back window will be exempt from tax on capital gains.
With rising gold prices, we expect much higher participation from investors in this issue.
Tranche No.
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Start Date
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SGB Issue Price - IBJA (In INR)
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Gold Price - IBJA (In INR)*
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Absolute Amount (Gain/(Loss)
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Absolute Return (%)
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No. of Days (Since Start Date)
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(Per Gram-999 Purity)
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(Per Gram- 999 Purity)
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(In INR)
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2015 -16 - I
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Nov’15
|
2,684
|
3,150
|
466
|
17.36%
|
301
|
2015 -16 - II
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Jan’16
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2,600
|
3,150
|
550
|
21.15%
|
234
|
2015 -16 - III
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Mar’16
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2,916
|
3,150
|
234
|
8.02%
|
177
|
2016 - 17 -I
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Jul’16
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3,119
|
3,150
|
31
|
0.99%
|
45
|
*price of current issue
