Sovereign Gold Bonds 2020-21 (Series IV) to be opened for the period July 6-10, 2020 with Settlement date July 14, 2020. The issue price of the Bond during the subscription period shall be Rs 4,852 per gram.
Daily Current Affairs Quiz 2020
Key-Points
A fixed rate of 2.5 per cent per annum is applicable on the SGBs, payable semi-annually.
Resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions can invest in the SGB scheme.
The SGBs are sold through commercial banks, the Stock Holding Corporation, designated post offices, and stock exchanges BSE and NSE. The bonds are held in RBI books or in demat form.
The gold bond scheme comes with a tenor of eight years, with an exit option after the fifth year. The option can be exercised on interest payment dates.
A minimum of one gram and a maximum of four kilograms of gold can be acquired by eligible individuals and HUFs in a financial year. Trusts and similar entities can purchase up to 20 kilograms in a financial year.
The interest on gold bonds is taxable. However, the capital gains arising out of redemption are exempted for individual investors.