The Government of India has decided to issue Sovereign Gold Bonds in tranches 2022-23 Series I and 2022-23 Series II As per the Schedule for 2022-23. Sovereign Gold Bond (SGB) Scheme introduced by the Government of India in consultation with the Reserve Bank of India, to offer investors an alternative to physical gold. Over the years, the market has witnessed a considerable decline in the demand for physical gold. SGB not only tracks the export-import value of the asset but also ensures transparency at the same time. SGBs are government securities and are considered safe. Their value is denominated in multiples of grams of gold. SGBs have witnessed a significant increase in investors, with it being considered a substitute for physical gold. Gold Sovereign Bonds are new-age investment vehicles for those interested in diversifying the portfolio with gold holdings.
If you are looking to purchase of SGB then this article is for you ,Sovereign Gold Bonds in tranches 2022-23 Series I and 2022-23 Series II As per the Schedule for 2022-23 Announced by the Government of India in consultation with the Reserve Bank of India
Tranche : 2022-23- Series I
Subscription Date : June 20 - June 24, 2022
Issuance Date : June 28, 2022
Tranche : 2022-23 Series II
Subscription Date : August 22 - August 26, 2022
Issuance Date : August 30, 2022
Features of Sovereign Gold Bonds
Eligibility for Sovereign Gold Bond Scheme 2022-23
Any Indian resident – individuals, Trusts, HUFs, charitable institutions, and universities – can invest in SGB.
Denomination for Sovereign Gold Bond Scheme 2022-23
The value of the bonds is assessed in multiples of gram(s) of gold, wherein the basic unit is 1 gram.
Tenure for Sovereign Gold Bond Scheme 2022-23
The maturity period of the sovereign gold bond is eight years. However, you can choose to exit the bond from the fifth year only on interest payout dates
Sizes for Sovereign Gold Bond Scheme 2022-23
Minimum limit of subscription will be One gram of gold. 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. In case of Joint holder Maximum limit of 4 KG will be applied to the first applicant only.
Issue price for Sovereign Gold Bond Scheme 2022-23
Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by IBJA for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less by ₹50 per gram for the investors who subscribe online and pay through digital mode.
Redemption price for Sovereign Gold Bond Scheme 2022-23
Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by IBJA of previous three working days.
Payment Mode for Sovereign Gold Bond Scheme 2022-23
Payment for the SGBs will be through cash payment (up to a maximum of ₹20,000) or demand draft or cheque or electronic banking.
Issuance Mode for Sovereign Gold Bond Scheme 2022-23
Only RBI can issue SGBs on the behalf of the Central Government and they are traded on the Stock Exchange. Investors will receive a Holding Certificate for it. You can also convert it to Demat form.
Sales channel for Sovereign Gold Bond Scheme 2022-23
The SGBs will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices (as may be notified) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents.
Interest rate for Sovereign Gold Bond Scheme 2022-23
Interest rate for SGB is 2.50% per annum on your initial investment. It is paid twice a year
Collateral for Sovereign Gold Bond Scheme 2022-23
The SGBs can be used as collateral for loans. The loan-to-value ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
KYC for Sovereign Gold Bond Scheme 2022-23
KYC norms will be the same as that for purchase of physical gold. Must complete KYC by submitting copies of identity proof such as Voter ID, Aadhaar card/PAN /Passport. Each application must be accompanied by the PAN Number.
Tax Benefits for Sovereign Gold Bond Scheme 2022-23
The interest on SGBs shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of the SGB.
Tradability for Sovereign Gold Bond Scheme 2022-23
Eligible for Trading
SLR eligibility for Sovereign Gold Bond Scheme 2022-23
The SGBs acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards Statutory Liquidity Ratio.
Commission for Sovereign Gold Bond Scheme 2022-23
Commission for distribution of the SGB shall be paid at the rate of one percent of the total subscription received by the receiving offices and receiving offices shall share at least 50 percent of the commission so received with the agents or sub agents for the business procured through them.
