Business Mantra: Faridabad
Govt. of India has launched sovereign gold bonds scheme on 18-7-2016. Investors in this gold bond scheme will get returns as per changes in market prices of gold at that point of time. Investors will get gold bonds and these bonds are tradable in stock exchange.
One more point to be highlighted is that, these bonds may be kept as collateral security for taking loan. As the name “Sovereign Gold Bonds” indicates that there is a sovereign guarantee or guarantee given by the government for both the capital invested and minimum interest as decided by government. If there is much increase in gold price, then investor may earn more returns, but if gold prices fall then a guarantee of minimum return is there.
These gold bonds will be available in Demat or physical paper form.
- For these bonds minimum investment period will be 8 years but in 5th, 6th and 7th year, there will be an exit option.
- If investor wants his money back before that period then bonds may be sold in stock exchange.
- The capital gain for individuals, on sale of these gold bonds will be exempt and for all investors other than individuals, benefit of indexation will be available to calculate long term capital gain on sale of these bonds.
- But if these bonds are redeemed after completion of minimum duration then capital gain in such case will be 100% exempt.
- For these bonds minimum investment will be 1gm and maximum investment may be 500gm.
- Investment in these bonds may be made through schedule banks, post offices, NSE agents and BSE agents.
- RBI has kept the price of gold bonds as 3119/gm.