Sovereign Gold Bond's Series IV to commence trading tomorrow

The Reserve Bank of India (RBI) on Wednesday announced that Sovereign Gold Bond's Series IV held in dematerialised will be eligible for trading on stock exchanges from April 13, 2017. 

RBI will issue the bonds on behalf of Government of India, and will sell it via banks, Stock Holding Corporation of Idia Limited (SHCIL), designated Post Offices, and recognized Stock Exchange.

Tenor of this bond will be for a period of 8 years with an exit option from 5th year to be exercised on the interest payment dates.

Issue price of gold bonds will be Rs 50 per gram less than the nominal value.

Investors will be compensated at a fixed rate of 2.50%  per annum payable semi-annually on the nominal value.

Maximum amount subscribed by an entity will not be more than 500 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained.

While minimum permissible investment under this bond will be 1 gram of gold.

Payment for the bonds will be carried through cash payment up to Rs 20,000 or demand draft or cheque or electronic banking.

Sale of the bond will be restricted to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions.