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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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Amit agarwal_13 10 years 12 months ago

Mcx world's 3rd largest commodity futures exchange and no 1 exchange of India with 85% market share.MCX gold prices should be taken to settle Government Gold Sovereign Bond. MCX gold and silver price are the benchmark of Entire Indian physical Bullion market.

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Jayesh Kumar 10 years 12 months ago

Unlikely to be successful in its current form. You must offer tax incentive for person to shift from physical gold to digital gold. As, when one buys physical gold, they get to use it as well (in form of jewellary), which would not be in this case (digital gold). Although safety would be higher. Since prices of gold would include (duty) if taken from NCDEX etc, it may not reflect the actual price. Also 2-3% interest doesn't offer much for loss of liquidity (trading cost).

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HIREN CHANDARIA 10 years 12 months ago

Great initiative. One should have an option to reinvest at the end of bond maturity without paying capital gain tax and replicate physical gold. Generally, gold is passed on from one family member to another, it never sold and hence does not attract any taxes. If taxes are not taken care of then it will not achieve its objective. One should be exempted from capital gain taxes if one invests in gold in a stipulate time. The tax structure may be in lines with tax structure for real estate.

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ketan satnalia 10 years 12 months ago

There should be two types of bond. One should be given to Jewellers as well, who in turn will be able to sell over the counter as the gold is sold. People will buy this bond instead of actual gold for marriage and other gift purpose. And lastly I propse a GOLD Bank be set up, where all the gold of RBI, SBI and even Temple etc. can be put and loaned to jewellers on demand

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ketan satnalia 10 years 12 months ago

The rate of interest may be about 3.5 to 4% approximately of the savings account rate. The certificate should be printed in Currency NOTE format and should be freely transferable, so that any body can gift it at the time of ceremonial occasions. Similar scheme for silver may also be made. Maturity of Bond in the name of original holder should not attract Capital gain tax, because the concept that he is retaining the gold in his possession.

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JAYESH_V_SANGHVI 10 years 12 months ago

In gold bond scheme only Gold should not be accept as investment but investment can be done by cash/cheque payment, because people keep on purchasing gold time to time for their child's marriage time, the social duties, social securities etc... thus such gold remains idle for numbers of years. By doing investment by cash/cheque the valuation conflicts (loss of making charge & purity of jewellery) of gold jewellery deposited as investment can be nullified & fresh investment in real gold reduces.

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Sangeetha Subbiah 10 years 12 months ago

#GoldBondScheme Post offices might start their own loan facility on these kind of bonds to increase the interest of people.As initially it might be difficult to expect others to accept it as collateral for loans.

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BRIJESH GUJRATI 10 years 12 months ago

I think this plan is partially work, because Middle class and upper middle class will not out gold ornament from house or lockers, only gold store by temples will be out.

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SRINIVASAN_24 10 years 12 months ago

I am unable to view or down load the draft of gold Bond scheme. Could you please send the same to my email ID to read and send my comments/views. Thanks & Regards Srinivasan

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unni joseph 10 years 12 months ago

People dont know about this plan in detail. Please give some advertisments from the panchayat level. People feel it as a safe plan then they will follow this. Otherwise they will keep the gold in shelfs.

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