NEW DELHI – The Indian Government, in partnership with the Reserve Bank of India (RBI), has introduced the upcoming issuance of Sovereign Gold Bonds (SGBs) in two separate sequence. The Series III tranche will probably be out there from December 18 to December 22, 2023, with an issuance date set for December 28. Following this, the Series IV tranche will open for subscription from February 12 to February 16, 2024, and will probably be issued on February 21.
These bonds will probably be accessible for buy by choose banks (excluding Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), publish places of work, and acknowledged inventory exchanges such because the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
The SGBs carry an eight-year tenor with an choice for early redemption after 5 years on dates when curiosity is payable. Investors have the flexibleness to purchase these bonds utilizing numerous fee strategies together with money (as much as ₹20k), demand draft, cheque or digital banking. The pricing of the bonds is decided primarily based on the typical closing worth of gold offered by the Indian Bullion Jewellers Association (IBJA) previous to the subscription week. Additionally, subscribers who go for digital mode or on-line purchases are entitled to a reduction of ₹50 per gram.
Investors in SGBs obtain a semi-annual curiosity at a fee of two.50%, which is topic to tax beneath present laws. However, capital beneficial properties arising from redemption are exempt from tax beneath the provisions of the Income Tax Act. For long-term capital beneficial properties arising from transfers, indexation advantages are relevant.
The authorities has set annual funding limits for these bonds at 4 kilograms for particular person buyers and Hindu Undivided Families (HUFs), and 20 kilograms for trusts and different entities. This initiative is a part of a broader technique by the Indian Government to supply various types of funding in gold and to scale back bodily demand for the dear metallic.
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