Jun 16: The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds in tranches as per the calendar specified below:
| S. No. | Tranche | Date of Subscription | Date of Issuance |
| 1. | 2022-23- Series I | June 20- June 24, 2022 | June 28, 2022 |
| 2. | 2022-23 Series II | August 22 –August 26, 2022 | August 30, 2022 |
The Sovereign Gold Bonds (SGBs) will be sold through Scheduled Commercial banks(except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The features of the Bond are as under:
| Sl. No. | Item | Details |
| 1 | Product name | Sovereign Gold Bond Scheme 2022-23 |
| 2 | Issuance | To be issued by the Reserve Bank of India on behalf of the Government of India. |
| 3 | Eligibility | The SGBs will be restricted from sale to resident individuals, HUFs, Trusts, Universities, and Charitable Institutions. |
| 4 | Denomination | The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of one gram. |
| 5 | Tenor | The tenor of the SGB will be for a period of eight years with an option of premature redemption after the 5th year to be exercised on the date on which interest is payable. |
| 6 | Minimum size | The minimum permissible investment will be One gram of gold. |
| 7 | Maximum limit | The maximum limit of subscription shall be 4 KG for individuals, 4 Kg for HUF, and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include SGBs subscribed under different tranches, and those purchased from the secondary market, during the fiscal year. |
| 8 | Joint holder | In the case of joint holding, the investment limit of 4 KG will be applied to the first applicant only. |
| 9 | Issue price | The price of SGB will be fixed in Indian Rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less than 50 per gram for the investors who subscribe online and pay through digital mode. |
| 10 | Payment option | Payment for the SGBs will be through cash payment (up to a maximum of `20,000) or demand draft or cheque or electronic banking. |
| 11 | Issuance form | The SGBs will be issued as Government of India Stock under the Government Securities Act, 2006. The investors will be issued a Certificate of Holding for the same. The SGBs will be eligible for conversion into Demat form. |
| 12 | Redemption price | The redemption price will be in Indian Rupees based on a simple average of the closing price of gold of 999 purity, of the previous three working days published by IBJA Ltd. |
| 13 | Sales channel | SGBs will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices (as may be notified), and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents. |
| 14 | Interest rate | The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value. |
| 15 | Collateral | Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to the ordinary gold loan mandated by the Reserve Bank from time to time. |
| 16 | KYC documentation | Know-your-customer (KYC) norms will be the same as that for the purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN, or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities. |
| 17 | Tax treatment | The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond. |
| 18 | Tradability | SGBs shall be eligible for trading. |
| 19 | SLR eligibility | SGBs acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards the Statutory Liquidity Ratio. |
| 20 | Commission | Commission for distribution of the bond shall be paid at the rate of one percent of the total subscription received by the receiving offices and receiving offices shall share at least 50 percent of the commission so received with the agents or sub-agents for the business procured through them. |
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