About RBI Sovereign Gold Bond
The Reserve Bank of India, in consultation with the Government of India, has decided to issue second tranche of Sovereign Gold Bonds. Applications for the bond will be accepted from January 18, 2016 to January 22, 2016. The Bonds will be issued on February 8, 2016.
It may be recalled that Honourable Finance Minister had announced in Union Budget 2015-16 about developing a financial asset, Sovereign Gold Bond, as an alternative to purchasing metal gold. Accordingly, the first tranche was open for subscription from November 05 to November 20, 2015.
Issue Highlights:
| Issue | RBI Sovereign Gold Bond |
| Issue Opens | January 18, 2016 |
| Issue Closes | January 22, 2016 |
| Minimum Investment | Rs. 5,200 (2 grams * Rs. 2600) |
| Maximum Investment | Rs. 13,00,000 (500 grams * Rs. 2600) |
| Issue Price | Rs. 2600 based on previous week's simple average closing price for Gold for 999 purity |
| Interest | 2.75% (Fixed rate) p.a. on the initial investment paid half yearly |
| Tenor | 8 years |
| Denomination | Units of 1 gram of Gold and in multiples thereof |
| Redemption | The bonds shall be repayable on the expiration of 8 years from the date of issue. Premature Redemption: From the 5th year of the date of issue on the interest payment date |
| Loan Facility | The bonds may be used as a collateral for loans |
| Nomination | Available |
| Payment Options | Cash / Cheque / Demand Draft / Electronic Transfer |
| Cheque to be drawn on | SBI Sovereign Gold Bond Scheme 2016 |
| Category of Investor | The bonds will be restricted for sale to Resident Indian Entities including individuals, HUFs, trusts, universities, and to the charitable institutions. |
| Limit of investment | Minimum subscription 2 grams and maximum investment 500 grams per investor per annum |
| Mode | Demat and Physical both |
| Interest Option | Half yearly interval, will be served directly in to the account mentioned in the application form or in the account linked with the demat a/c. |
| Maturity period | 8 years from date of issue |
| Premature redemption | On the coupon dates from the 5th year of issuance. |
| Tradability | Trading of these bonds on exchanges shall be notified. |
Please note:
You can apply online in RBI Sovereign Gold Bond Scheme till 12.45PM on January 22, 2016. After cut off time applications shall not be accepted.
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