The Ministry of Finance on October 09, 2020 has issued the Sovereign Gold Bond Scheme 2020-21. There will be a distinct Series (starting from Series VII) for every tranche which will be indicated on the Bond issued to the investor.
The following provisions have been made in the scheme:
Eligibility for Investment:
•All the gold bonds under the scheme shall be held by a trust, HUF’s, Charitable institution or by University. It can be held by an individual who is a resident of India, by an individual on behalf of a minor or jointly by several individuals.
Denomination, Subscription Limit and Pricing:
•The gold bonds shall be issued in the denominations of one gram of gold or its multiples.
•The maximum limit for the gold shall be 4kg for individuals, 4kg for HUF’s and 20kg for trusts and universities.
Procedure for making application for subscription to Gold Bonds:
•Form A shall be filed by the applicant specifying the denomination of the gold bond, address, and full name.
•All the prescribed documents shall be submitted by the applicant.
•PAN number shall be mandatorily given.
•An acknowledgement form shall be issued by the officer receiving the application and same shall be forwarded to the applicant in Form B.
•An incomplete application shall be rejected.
Date and Form of Issue of Gold Bonds:
•The Gold Bonds shall be issued in the form of stock certificates in Form C.
•Gold can be converted in the Demat form.
Redemption:
•The Gold Bonds shall be repaid on the expiry of 8 years from the date of issue.
•The redemption of the gold bonds shall be done in Indian Rupees on the maturity of the Bond.
[Notification No. G.S.R. 627 (E)]
