Ministry of Finance Notifies Sovereign Gold Bond Scheme 2023-24

The Ministry of Finance has notifies Sovereign Gold Bond Scheme 2023-24 via Notification.

The Notification Stated as, “In exercise of the powers conferred by clause (iii) of Section 3 of the Government Securities Act, 2006 (38 of 2006), the Central Government hereby makes the following Scheme.”

This scheme may be called the Sovereign Gold Bond Scheme 2023-24. There will be a distinct Series (starting from Series I) which will be indicated on the Bond issued to the investor. It shall come into force on the date of its publication in the Official Gazette.

Definition

In this Scheme, unless the context otherwise requires:

a) “Form” means a form appended to this Scheme.

b) “Receiving office” means the offices or branches of Nationalised Banks, Scheduled Private Banks, Scheduled Foreign Banks (as specified in Annexure I to this Notification), designated Post Offices (as specified in Annexure II to this Notification), Stock Holding Corporation of India Ltd. (SHCIL), the authorised stock exchanges, and Clearing Corporation of India Limited (CCIL) or any other entity as may be approved by RBI as specified in Annexure III to this Notification.

c) “Stock Certificate” means the Gold Bond issued in the form of Government of India Stock in accordance with Section 3 of the Government Securities Act, 2006.

Eligibility for Investment

The Gold Bonds issued under this Scheme may be held by a Trust, HUFs, Charitable Institution, University or 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.

Explanation–– For the purposes of this paragraph:

(i) “person” shall have the same meaning as defined in clause (u) of Section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).

(ii) the expression “person resident in India” shall have the same meaning as defined in clause (v) of Section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).

(iii) “Trust” means a trust constituted/formed as per the Indian Trusts Act, 1882, or a public or private trust constituted or recognized under the provisions of any Central or State law for the time being in force and also an express or constructive trust constituted for either a public religious or charitable purpose or both which includes a temple, a math, a wakf, a church, a synagogue, agiary or any other place of public religious worship, or a dharmada or any other religious or charitable endowment and also a society, formed either for a religious or charitable purpose or for both, registered under the Societies Registration Act, 1860 or under any other law for the time being in force in India.

(iv) “Charitable Institution” means a company registered under Section 25 of the Indian Companies Act, 1956 or under Section 8 of the Companies Act, 2013; or an institution, which has obtained a Certificate of Registration as a charitable institution in accordance with a law in force; or Any institution which has obtained a certificate from an Income Tax Authority for the purposes of Section 80G of the Income Tax Act, 1961.

(v) “University” means a university established or incorporated by a Central, State or Provincial Act, and includes an institution declared under Section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a university for the purposes of the Act.

Denomination, Subscription limit and Pricing

(i) The bonds will be issued in denominations of one gram of gold or multiples thereof.

Provided that the minimum limit of subscription for the Bonds issued shall be of one gram and maximum limit of subscription per fiscal year shall be of four kg for individuals, four kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the Government from time to time;

Provided that in case of joint holding, the above limits shall be applicable to the first applicant only;

Provided that the annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market; and

Provided further that the ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.

(ii) The nominal value of Gold Bonds shall be in Indian Rupees fixed on the basis of 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.

(iii) The issue price of the Gold Bonds will be less than the nominal value by ₹50 per gram to those investors applying online and making the payment against the application through digital mode.

Procedure for making application for subscription to Gold Bonds

(i) Any person who is desirous of subscribing to the Gold Bonds shall apply to any Receiving office in Form ‘A’ or in any other form as near as thereto, clearly stating the grams of gold, full name and address of the applicant/s.

(ii) Every application shall contain such documents and particulars as specified in the instructions contained in the Application Form.

(iii) Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to Individuals and other entities.

(iv) On receipt of an application under sub paragraph (i), the Receiving office shall issue an acknowledgment receipt in Form ‘B’ if all requirements of the application are fulfilled.

(v) An incomplete application is liable to be rejected.

Date and form of issue of Gold Bonds

(i) The Gold Bonds shall be issued in the form of a Stock Certificate, as specified in Form ‘C’ on the date of issue of respective tranches as mentioned in the para 8 of this Notification.

(ii) The Gold Bonds shall be eligible to be converted into Demat form.

Period of Subscription

The subscription to the Gold Bonds under this Scheme shall remain open as specified in Section 8 below.

Provided that the Central Government may, with prior notice, close the Scheme at any time before the period specified above.

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