The Central Government has launched ‘Sovereign Gold Bonds Scheme‘ as an alternative to purchasing physical gold. The application forms for subscribing to seventh tranche of Sovereign Gold Bonds issue are available from 27th February, 2017 to 3rd March, 2017. The bonds will be issued on 17th March, 2017.
Sovereign Gold Bond Scheme is an indirect way of investing in Gold. Instead of buying Physical Gold, investors can invest in gold in a paper form through Sovereign Gold Bond Scheme. The under-lying asset for these bonds is Gold. These bonds will track the price of gold, plus an extra interest earning on top of that.
Bonds will be issued on behalf of the Government of India by RBI (Reserve Bank of India). These will be marketed through Post Offices / Banks / NBFCs (Non-banking Finance Companies) and by various brokers/agents (including National Saving Certificate (NSC) agents). Gold Bonds can now be purchased from NSE and BSE, besides all Bank branches and select Post Offices.
Sovereign Gold Bonds 2016-2017 : Application Form
The application forms for buying Sovereign Gold Bonds are available at banks (all schedule commercial banks) or at designated post office branches. You may click on the below image to download the application form (Form A).
- The gold bonds can be applied in joint names. In case if you are applying on behalf a minor, you have to submit an attested copy of the birth certificate (minor’s) from the School or Municipal Authorities for verification. Kindly note that nomination facility is not available in case the investment is on behalf of a minor. Also mention the application status as Resident Individual or HUF or Trust etc.,
- You have to provide the investment details. The minimum permissible investment will be 1 unit (i.e. 1 gram of gold) and the maximum buying limit is 500 gms per person per fiscal year.
- The issue price for sixth Tranche Gold Bonds (Oct to Nov 2016) has been fixed at Rs 3,007 per gram. However, the Govt has decided to issue the Gold bonds at a discounted price of Rs 2,957 per gram (a discount of Rs 50). You also have to provide the mode of payment (cash / cheque / electronic transfer. cash payment upto a maximum of Rs. 20,000).
- If you wish to hold the Sovereign Gold Bonds in ‘Demat‘ form, you have to provide your ‘depository participant’ details. Even if you subscribe to physical bonds, you can still convert them into demat form in future.
- If you wish to receive the interest payments & maturity payment (redemption payment) through electronic mode (direct credit to your bank account), you can provide your bank account details.
Important instructions
- In case the application is submitted by a Power of Attorney (POA) holder, please submit original POA for verification, along with an attested copy.
- Please note that nomination facility (maximum two nominees) is available to a Sole Holder or all the joint holders (investors) of an SGB. The nomination will be registered at the Office of Issue and a Certificate of Registration will be issued to the holder. The existing nomination can be cancelled or altered by a request to the Office of Issue.
- In case nominee is a minor, please indicate the date of birth of the minor and a guardian can be appointed. Nomination facility is not available in case the investment is on behalf of minor.
- In case of change of bank account, you can notify the change and get the details updated.
- You have to submit KYC documents along with the application form.
- The interest on the bond is paid half-yearly. The payment of Interest amounts will be done through the bank A/c provided in the Application form (or) to your bank A/c that is linked to the Dmat, as the case may be. Post maturity date, interest amount is not payable on gold bonds.
- The designated banks may soon provide online application facility too.
You may also like reading my article – “Sovereign Gold Bonds Scheme – Features, FAQs & Review“.
This post was last modified on July 10, 2023 9:27 pm
Sreekanth ReddySreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging & property consultancy for the last 14 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider. The main aim of his blog is to "help investors take informed financial decisions." "Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. The information provided, therefore, should not be viewed as financial, legal, accounting, tax or investment advice."
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Hi, I have also applied for the SGB via ICICI bank online banking. The amount was debited on 17 Nov but till date bonds have not been credited in my Demat Account. ICICI has no clue about it. What can be done? Has anyone got the same in their Demat account? Is this a normal procedural delay or something to worry about?
Dear Abhinav..For time being you can request the ICICI Bank to give a Printed copy of the Certificates.
Hi , I applied for the SGB via icici bank online mode, received subscription certificate/receipt from rbi on 9th nov, amount auto debited from bank on 17th nov, I have not received the certificate of holding yet via email..do you know when i can expect to receive it, or should i contact icici
Dear Jaya..Kindly check with your banker.
Did anyone get credit of Sovereign Gold Bond November 2016 tranche in DMAT? Date of allocation was 17th November. I still do not see in my dEmat account.
Sreekant, can you please help me if it has got creditted or it is going to take some time?
Dear Kamlesh ..Kindly contact your Demat account provider/Banker.
Thanks Sreekant.
My question, did anyone get or have RBI released the allottment?
Dear Kamlesh.. The bonds were supposed to be issued on 17th November, 2016.
As of now, I do not have information if the bonds are issued or not.
I had also applied for the SGB Nov 2016 online. These are not seen on my demat account
any update?
Ok. Do post if you get in Demat .
In case of application for bonds in demat form, does one need to fill in nomination form separately , or Nomination in Demat account will be operational for these bonds too.
Dear Samir..IF the bonds are allotted to your Dmat account then the same nomination applies to bonds too.
Thanks Sreekanth
Timely discussion - I am thankful for the details ! Does someone know if my company could possibly obtain a fillable IN ECI-EPIC-002 document to use ?
how i covert into demaat form certofictae isued in papaer
Dear narayanan ..You have to contact the concerned Depository participant (DP) and get them converted.
i bought SGB through net banking, but not received any physical bond.
afterward inquired in bank, they told i will get directly through post, i have not received.
Bank has given me temporary certificate.
what is the option to get my physical bond.
from which bank u purchased gold bond online
Is there any Portal for buying Online Tax Free Bonds of PSU's from Secondary Matrket
Dear Vasudevan ..You can check with any online brokerage house.
Dear Srikanth,
I had applied for SGB (July 2016 Issue) via ICICI Direct.Com. Was of impression that allotment will be completed by 5th August 2016. However till date I have not received any e-mail confirmation for allotment or any DMAT credit for the units purchased.
Can you please suggest how I can check its allotment status? Where can I lodge a complaint if its taking a long time than usual? Is it RBI? I have an application reference as is visible from my DMAT account (Order details).
Waiting for your advice.
Regards,
Debashish
Hi, Same case with me.. Amount got debited on 5th Aug. but till date no communication or bonds in my Demat in ICICI Direct. I had applied from my ICICI SB netbanking.
Dear Debashish ..Kindly check with your demat service provider.
I have purchased gold bonds issue 3....the receipt says SGB II. till now i have not received any physical bonds..
My question is jow do i get the issue no. Rectified? Will i get any physical form/ paper bonds?
Any idea about redemption process after 8 years?
Dear Gaurav ..Did you apply for Physical certificates or in demat form? Kindly contact your banker/post office branch.
You can just submit the certificates to the concerned bank/PO and the redemption price will be in Indian Rupees based on previous week’s (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA (Indian Bullion Jewelers Association). So, you would be receiving cash and not psychical gold on maturity date.