<p class="title">The government has announced this fiscal's first tranche of the sovereign gold bond (SGB) and its subscription will open on April 16.</p>.<p class="bodytext">The sovereign gold bond 2018-19, Series-I, will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges namely the NSE and BSE, the finance ministry said in a statement.</p>.<p class="bodytext">"The Government of India, in consultation with the Reserve Bank of India, has decided to issue the sovereign gold bond, 2018-19-Series-I. Applications for the bond will be accepted from April 16 to 20, 2018. The certificate of bonds will be issued on May 4, 2018," it said.</p>.<p class="bodytext">Under the scheme, the bonds are denominated in units of one gram of gold and multiples thereof. Minimum investment in the bonds is one gram with a maximum limit of subscription of 500 grams per person per fiscal year (April-March).</p>.<p class="bodytext">The maximum limit of subscription would be 4 kg for individual and HUF and 20 kg for trusts and similar entities per fiscal (April-March) notified by the government from time to time, it said.</p>.<p class="bodytext">The annual ceiling will include bonds subscribed under different tranches during initial issuance by the government and those purchase from the secondary market, it said.</p>.<p class="bodytext">To promote digital payment, it said, the issue price of the gold bonds will be Rs 50 per gram less for those who subscribe online and pay through digital mode.</p>.<p class="bodytext">Investors in these bonds have been provided with the option of holding them in physical or dematerialised form.</p>.<p class="bodytext">As per the statement, the bonds with tenure of 8 years will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.</p>.<p class="bodytext">The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value, it said.</p>.<p class="bodytext">Payment for the bonds will be through cash payment (up to a maximum of Rs 20,000) or demand draft or cheque or electronic banking.</p>.<p class="bodytext">Price of the bond will be fixed in rupees on the basis of a simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.</p>.<p class="bodytext">The bonds can be used as collateral for loans. The loan-to-value ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.</p>.<p class="bodytext">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 the transfer of bond.</p>
<p class="title">The government has announced this fiscal's first tranche of the sovereign gold bond (SGB) and its subscription will open on April 16.</p>.<p class="bodytext">The sovereign gold bond 2018-19, Series-I, will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges namely the NSE and BSE, the finance ministry said in a statement.</p>.<p class="bodytext">"The Government of India, in consultation with the Reserve Bank of India, has decided to issue the sovereign gold bond, 2018-19-Series-I. Applications for the bond will be accepted from April 16 to 20, 2018. The certificate of bonds will be issued on May 4, 2018," it said.</p>.<p class="bodytext">Under the scheme, the bonds are denominated in units of one gram of gold and multiples thereof. Minimum investment in the bonds is one gram with a maximum limit of subscription of 500 grams per person per fiscal year (April-March).</p>.<p class="bodytext">The maximum limit of subscription would be 4 kg for individual and HUF and 20 kg for trusts and similar entities per fiscal (April-March) notified by the government from time to time, it said.</p>.<p class="bodytext">The annual ceiling will include bonds subscribed under different tranches during initial issuance by the government and those purchase from the secondary market, it said.</p>.<p class="bodytext">To promote digital payment, it said, the issue price of the gold bonds will be Rs 50 per gram less for those who subscribe online and pay through digital mode.</p>.<p class="bodytext">Investors in these bonds have been provided with the option of holding them in physical or dematerialised form.</p>.<p class="bodytext">As per the statement, the bonds with tenure of 8 years will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.</p>.<p class="bodytext">The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value, it said.</p>.<p class="bodytext">Payment for the bonds will be through cash payment (up to a maximum of Rs 20,000) or demand draft or cheque or electronic banking.</p>.<p class="bodytext">Price of the bond will be fixed in rupees on the basis of a simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.</p>.<p class="bodytext">The bonds can be used as collateral for loans. The loan-to-value ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.</p>.<p class="bodytext">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 the transfer of bond.</p>