ICICIdirect Executive Thank you for the query. We would like to inform you that the bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds held in de-mat form with depositories can be traded in stock exchanges) The bonds can also be sold and transferred as per provisions of Government Securities Act, 2006. Partial transfer of bonds is also possible.
ICICIdirect Executive Thank you for the query. We would like to inform you that Sovereign Gold Bonds (SGBs) 2020-21 Series II is open for subscription from today, Monday, May 11, 2020, to May 15, 2020.
Issue Price: Nominal value of the Bonds shall 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 for the last three business days of the week preceding the subscription period. The issue price of the Gold Bonds will be Rs. 50 per gram less than the nominal value to those investors applying online and the payment against the application is paid through digital mode.
The Issue price for the current tranche is Rs. 4590/gm – Rs. 50/gm = Rs. 4540/gm
Maturity: 8 years with exit option from 5th year to be exercised on the interest payment dates. These bonds shall be traded on exchanges.
Subscription limits: Minimum 1 grams of gold, Maximum- 4000 grams (4kgs) of gold per person in a fiscal year (April- March). Available in units of one gram of gold & multiples thereof.
Taxation: Capital gain tax arising on redemption of SGBs to an individual has been exempted.
If sold in secondary market before maturity, capital gains will taxed @ of 20% with indexation if sold on or after 3 years and would be subject to marginal tax rate if sold before 3 year.
Interest: 2.50% fixed per annum payable semi-annually
To subscribe to Sovereign Gold Bond, follow the below steps:
Log into your account > Trade & Invest > IPO/FPO/BUYBACK > (scroll down) FD/BONDS PLACE ORDER > Click on Apply from the Action column against the Sovereign Gold Bond.
Product note, Terms & Condition of the issue can be viewed from the same section.
Community User When you say Interest rate - there are two
Interest rate for loans and interest rate for deposit holders.
These are y personal opinion.
Interest rate on loan - will be reduced as Government and RBI are hell bent on reduction of lending rate. Their main aim is to reduce the interest burden so that the individual will have more money which in turn will increase consumption. The recent RBI tweeks is one of its kind where they did not reduce the benchmark rate but did few things which has reduced the cost of borrowing money for banks. This eventually will reduce the interest rate on loans. The rate of reduction no one can predict but it is on the down turn.
Interest rate on Deposits - When a bank is able to get money for lending from RBI at 5.20% for three years, then the deposits rate need to come down. As most of indians save in the form of deposits, a marginal reduction will definitely improve the margins of banks. Hence I do feel that the deposits will also reduce. Banks have already reduced the rate to its rock bottom of 6%.
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