Sovereign Gold Bond 2018-19 – Series V

 Details of Sovereign Gold Bonds

• Issue Period: January 14th, 2019 to January 18th, 2019 View Report
• Issue Price: Rs. 3164[ * Nominal Value of the Bonds)
• Coupon rate: 2.5% per annum which will be paid semi–annually. 
• Minimum Application size: 1 Units ( 1 Gram) and thereafter in multiples of 1 {Upper Cap of 4000 gms}
• Maximum  Application Size: 4000 grams per person per fiscal year (Apr–Mar)
• Mode of Allotment: Customers will be issued a Holding certificate (Form C). Bonds are eligible for conversion to Demat form
• Date Of Allotment: January 22^nd 2019
• The tenor of the Bond will be for a period of 8 years with exit option in 5th, 6th and 7th year to be exercised on the interest payment dates

 (Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961. The Capital gains tax arising on redemption of SGB  to an individual has  been exempted. )

 All Registered Resident Indians (RI) &HUF Clients can apply online through their trading account or call our Call & Trade Numbers ( 0 + area  Code + 33553366)

 WHO CANNOT APPLY

 NRIs cannot apply

 INTRODUCTION

 Honorable finance minister in the union Budget 2015-16 has announced the introduction of a sovereign Gold Bond to reduce the demand for  physical gold. Bonds will  be issued by the Reserve bank of India on behalf of the Government of India.

 The salient features of the scheme are:-

• Tenor of the bond will be for a period of 8 years with exit option at 5th, 6th and 7th year. Here exit option for the customer will only be on the next coupon date. This will happen automatically once the redemption is entered
• Bonds will be issued in denomination of a basic unit of one gram and multiple of one unit thereafter with minimum investment of 1 Unit (1 Gram).
• Maximum amount that can be bought by an entity will be 4000 grams per person per fiscal year (Apr –Mar).
• Customers will be issued a Holding certificate. Bonds are eligible for conversion to Demat form.
• Coupon rate for the investors will be @ 2.5% per annum which will be paid semi – annually. (Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961(43 of 1961). Capital gains tax treatment will be the same as that for physical gold.)