India Launches New Series of Gold Bond Scheme

SEATTLE (Scrap Monster): The Indian Ministry of Finance announced launch of new series of the Sovereign Gold Bond (SGB) Scheme. The scheme will be open for subscription from April 20^th and will be issued in six tranches extending until September 4^th.

The gold bonds will be issued by the Reserve Bank of India (RBI) on behalf of the Government of India. It will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges, either directly or through designated agents.

The minimum and maximum investment limit in the bonds is fixed at 1 gram and 4 kilograms of gold. Meantime, trusts and similar entities are eligible to invest up to 20 kilograms. The bond maturity period is set as 8 years, although investors will be provided with an exit option upon completion of five years.

The investments of up to INR 20,000 in bonds can be done through cash payment. For investments exceeding that amount, the payment should be made through demand draft or cheque or through electronic transfer. The holdings in bonds will be paid interest at the fixed rate of 2.5% per annum, which will be payable semi-annually. The interest shall be taxable as per IT Act provisions.

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