te Applications for Sovereign Gold Bonds Series II to begin from July 10, FinMin says | Zee Business

Applications for Sovereign Gold Bonds Series II to begin from July 10, FinMin says

Tenor of this bond will be for a period of 8 years with an exit option from 5th year to be exercised on the interest payment dates.

Applications for Sovereign Gold Bonds Series II to begin from July 10, FinMin says
People busy buying jewellery on "Akshaya Tritiya". Photo: IANS

Ministry of Finance on Thursday announced issuance of second series of Sovereign Gold Bond Scheme 2017-2018. The window for the applicants will be open from July 10-July 14, 2017.

RBI will issue the bonds on behalf of Government of India, and will sell it via banks, Stock Holding Corporation of Idia Limited (SHCIL), designated Post Offices, and recognized Stock Exchange.

As per the Ministry, the bonds will be denominated in multiples of gram of gold with a basic unit of 1 gram. 

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Tenor of this bond will be for a period of 8 years with an exit option from 5th year to be exercised on the interest payment dates.

"Price of Bond will be fixed in Indian Rupees 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 week (Monday to Friday) preceding the subscription period. The issue price of the Gold Bonds will be Rs 50 per gram less than the nominal value," Ministry said.

Investors will be compensated at a fixed rate of 2.50%  per annum payable semi-annually on the nominal value.

Maximum amount subscribed by an entity will not be more than 500 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained.

While minimum permissible investment under this bond will be 1 gram of gold.

Payment for the bonds will be carried through cash payment up to Rs 20,000 or demand draft or cheque or electronic banking. Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required, the Ministry added. 

Sale of the bond will be restricted to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions.

Written By: ZeeBiz WebTeam
Updated: Thu, Jul 06, 2017
07:36 pm
Mumbai, ZeeBiz WebDesk

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