News Update

Loads Mahdi :::: Ashiyane digital security teamIndia, Portugal agree to amend DTAA; Portugal also provides letters between Goa and Portugal in 17th CenturyIGI Airport to saturate in 2024; Govt sanctions Jewar Airport at G NoidaFICCI extends full support for smooth GST rollout in N-EDeemed exports benefits may be lost under GST regime: Commerce SecretaryWeather Portal for power sector launchedCBEC - IRS officers of 1981-82 batches get Apex Grade; become Pr CCsJ&K Deputy CM favours early implementation of GSTCus - Applicant seeking early hearing as he doesn't want any posthumous pardon from legal system - request granted: CESTATPIL filed before Bombay High Court for deferment of GST till next yearBanking Ombudsman - RBI expands scope to impose penalty for wrongly palming off third party products to customersIGI Airport Customs seizes gold worth Rs 1.1 Crore from different paxDomestic tourist visits take a leap of 12.7% in 2016EEPC India opens Technology Centre in BengaluruCyber crimes against children can now be reported at POCSO e-BoxCBEC to celebrate July 1 as GST Day every yearUnion Govt releases fresh list of 30 more Smart CitiesIndia-Malaysia Comprehensive Economic Cooperation Agreement (Bilateral Safeguard Measures) Rules, 2017 notifiedGST - Workshop for textiles - TCS software Adhigam earns appreciationTrade in wildlife articles - Dr Harsh Vardhan calls for continuation of harsh actionCabinet okays MoU with Portugal in public administration fieldCX - Debit notes caused deliberate under valuation - penalty is only remedial measure else it would be an incentive to lawlessness: CESTATI-T - Comparable sales instances of commercial properties is no deciding factor in determining valuation of residential flat: HCCX - Whether there is burning loss of 7.5% or even 15% that alone cannot be reason to demand the duty: CESTAT
 
Govt to issue Sovereign Gold Bonds Series I from Monday

By TIOL News Service

NEW DELHI, APRIL 20, 2017: GOVERNMENT of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds 2017-18 –Series I. Applications for the bond will be accepted from April 24, 2017 to April 28, 2017. The Bonds will be issued on May 12, 2017.

The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange.

The features of the Bond are given below:

Sl. No. Item Details
1 Product name Sovereign Gold Bond 2017-18 – Series I
2 Issuance To be issued by Reserve Bank India on behalf of the Government of India.
3 Eligibility The Bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions.
4 Denomination The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
5 Tenor The tenor of the Bond will be for a period of 8 years with exit option from 5 th year to be exercised on the interest payment dates.
6 Minimum size Minimum permissible investment will be 1 gram of gold.
7 Maximum limit The 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.
8 Joint holder In case of joint holding, the investment limit of 500 grams will be applied to the first applicant only.
9 Issue price 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.
10 Payment option Payment for the Bonds will be through cash payment (upto a maximum of Rs. 20,000) or demand draft or cheque or electronic banking.
11 Issuance form The Gold Bonds will be issued as Government of India Stocks under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat form.
12 Redemption price The redemption price will be in Indian Rupees based on previous week's (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA.
13 Sales channel Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices as may be notified and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents.
14 Interest rate The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
15 Collateral Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
16 KYC Documentation 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.
17 Tax treatment The interest on Gold Bonds 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 has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond
18 Tradability Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
19 SLR eligibility The Bonds will be eligible for Statutory Liquidity Ratio purposes.
20 Commission Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription received  by  the  receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or sub agents for the business procured through them.

POST YOUR COMMENTS