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Draft Sovereign Gold Bond Scheme

Draft Sovereign Gold Bond Scheme
Start Date :
Jun 17, 2015
Last Date :
Jul 02, 2015
17:00 PM IST (GMT +5.30 Hrs)
Submission Closed

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement: ...

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement:

“India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of gold each year. Though stocks of gold in India are estimated to be over 20,000 tonnes, most of this gold is neither traded, nor monetized. I propose to… develop an alternate financial asset, a Sovereign Gold Bond, as an alternative to purchasing metal gold. The Bonds will carry a fixed rate of interest, and also be redeemable in cash in terms of the face value of the gold, at the time of redemption by the holder of the Bond.

Accordingly, a draft outline of the Scheme has been prepared. Comments and views are invited on the draft scheme by 2nd July, 2015.

(The outline of the Sovereign Gold Bond Scheme is only at the draft stage and is being placed here to obtain public opinion. The scheme as it stands at this stage, does not imply any commitment from the government)

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Showing 202 Submission(s)
Dr Swapan Kumar Banerjee
Dr Swapan Kumar Banerjee 11 years 6 days ago
Gold bond will go a long way to reduce its consumption. Indian women have a passion for showing off their gold ornament. TV serials fuels this passion which is harmful. Some educated women don't hanker for gold and are happy to wear simple ornaments. Culturally girls should be brought up with the idea that their qualifications and skills are better ornaments than gold. Cinema, TV serials should emphasize this idea. India needs a changed mentality.
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Comments (2)
Radha
Radha 11 years 6 days ago
may be we can develope smaller coins too to make it more liquid in use. but that is dangerous scenario .considering black money insertion in economy. smaller coins can be replicated
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Ravikiran Rajagopal
Ravikiran Rajagopal 11 years 6 days ago
My feedback: 1. Per person upper limit is not required. 2. Good idea for rate of interest floor - but long term effects should be reviewed. 3. Tenure can be increased to 10-15 years 4. Capital gain tax treatment should be different from physical gold. If you keep it the same, there will be no incentive to buy gold bond, instead of physical gold which is material. If you have to change behavior, tax incentives are must. Instead keeping same, will yield the same result. Excellent initiative !
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Comments (1)
Amit Kumar_274
Amit Kumar_274 11 years 6 days ago
But this Gold Bond is very Risky for Govt / bank if gold value shoots up beyond 8% per year at maturity . Add the 2 - 3% , total interest outgo will be 10% - 11% per annum The Bond Issuer will lose money. If gold value drops from present value bond issuer will gain. Chances of gold going up by 50% - 100% is higher in next 5 - 7 years due to weak US economy. A better option is to stick to issuing Rupee Bond of 7 - 8% per year with no pan card required for
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Amit Kumar_274
Amit Kumar_274 11 years 6 days ago
Face value at maturity means they get gold value as per prevailing market value of gold. That means no interest . Not sure which fool drafted this...unless its intentional. ..in which case why deposit if you don't get interest ?
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Venkatachalam Ramasamy
Venkatachalam Ramasamy 11 years 6 days ago
Sir, please add the physical gold also as deposits and pay the public. There are so much gold with south Indians. So much money wasted in buying gold jewels. It is not used for the economy of our country. Get them as gold deposit and put it in locker. Most of middle class like us wants safer gold jewels and will be happy if we gets interest for our jewels. Whatever in this aspect will be of win win for everyone involved. Thanks
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JITENDRA KUMAR CHOPRA
JITENDRA KUMAR CHOPRA 11 years 6 days ago
As per Draft: On maturity ,the investor receives the equivalent of the face value of gold in Rupee terms. 1. What is the meaning of face value of gold in Rupee terms. 2.On maturity , price of gold will decide the maturity value or face value of gold bond
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JITENDRA KUMAR CHOPRA
JITENDRA KUMAR CHOPRA 11 years 6 days ago
(a)One clause say Tenor of Gold Bond will be 5 or 7 years , then another clause say bond to be easily sold,traded on commodity exchange.How it is possible ? (b) Ex. I invest in 10 Gms Gold Bond (say Rs.27000), then after 7 years what will I get on maturity? Rs.27000+ Interest or Gold price on matuiry Date+ Interest. Please someone on discussion can explain it.
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