The Government of India has announced Sovereign Gold Bond Scheme 2019-20 (“the Bonds”). The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. The bond may also be held by a Trust, HUFs, Charitable Institution and University. “Person resident in India” is defined under section 2(v) read with section 2(u) of the Foreign Exchange Management Act, 1999.
The Sovereign Gold Bonds will be issued every month from June 2019 to September 2019 as per the calendar specified below: HUFs, Trusts, Universities and Charitable Institutions.
|S.No.||Tranche||Date of Subscription||Date of issuance|
|1||2019-20 Series I||June 03-07, 2019||June 11, 2019|
|2||2019-20 Series II||July 08–12, 2019||July 16, 2019|
|3||2019-20 Series III||August 05-09, 2019||August 14, 2019|
|4||2019-20 Series IV||September 09-13, 2019||September 17, 2019|
The Bonds will be denominated in units of one gram of gold and multiples thereof. Minimum investment in the Bonds shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March),provided that;
Payment will be accepted in Indian Rupees through cash up to a maximum of ₹ 20,000/- or Demand Drafts or Cheque or Electronic banking. Where payment is made through cheque or demand draft, the same shall be drawn in favour of receiving office.
The nominal value of the Bonds shall be fixed in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewelers Association Limited for the last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
For details read related article: Advantage of Gold Bonds compared to physical form of Gold.