In exercise of the
powers conferred by clause (iii) of section 3 of the Government Securities Act,
2006 (38 of 2006), the Central Government hereby makes the following Scheme,
namely: - (1) This scheme may be called the Sovereign Gold Bonds Scheme, 2015. (2) It shall come into force on the date of its publication in the Official
Gazette. In this Scheme, unless the context otherwise
requires, (a) "Form" means a form appended to this Scheme; (b) "receiving office" means the offices or branches of
Nationalised Banks, Scheduled Private Banks, Scheduled Foreign Banks as
specified in Annexure I to this Scheme and designated Post Offices as may be
notified; (c) "Stock Certificate" means the Gold Bond issued in the form of
Government of India Stock in accordance with section 3 of the Government of
India Securities Act, 2006. (1) The Gold Bonds under this Scheme may be held by a person resident in
India, being an individual, in his capacity as such individual, or on behalf of
minor child, or jointly with any other individual. Explanation. For the purposes of this paragraph, (i) the expression "person" shall have the same meaning as defined
in clause (u) of section 2 of the Foreign Exchange Management Act, 1999 (42 of
1999); (ii) the expression "person resident in India" shall have the same
meaning as defined in clause (v) of section 2 of the Foreign Exchange
Management Act, 1999 (42 of 1999). (1) Subscription shall be in the form of denominated units of one gram of
Gold or multiples thereof: Provided that the minimum limit of subscription in
the Bond shall be of two grams and maximum limit of subscription shall be of
five hundred grams per person per fiscal year: Provided further that in case of joint holding, the
above limits shall be applicable to the first applicant only. (2) The issue price of Gold Bonds shall be made in Indian Rupees on the
basis of simple average of closing price of gold of 999 purity of previous week
(Monday to Friday) published by the India Bullion and Jewelers' Association
Limited. (1) Every Subscriber who is desirous of making subscription to the Gold
Bonds shall apply to any receiving office in Form 'A' or in any other form as
near as thereto, stating clearly the grams of gold and full name and address of
the applicant. (2) Every application shall contain such documents and particular as
specified in the instructions contained in the Application Form. (3) On receipt of an application under sub paragraph 1, the receiving office
shall issue an acknowledgment receipt in Form 'B', if all requirements of the
application are fulfilled. (4) An incomplete application is liable to be rejected if all requirements
of the application are not fulfilled within period specified in paragraph 6. (1) The Gold Bonds shall be issued on the 26th day of November, 2015 in the
form of a Stock Certificate as specified in Form 'C'. (2) The Gold Bonds shall be eligible to be converted into De-mat form. The Subscription of the Gold Bond under this Scheme
shall open on and from the 5th day of November, 2015 and shall closed on the
20th day of November, 2015; Provided that the Central Government may, with
prior notice, close the Scheme before the period specified above. (1) The interest on the Gold Bonds shall commence from the date of its issue
and shall have a fixed rate of interest at 2.75 percent per annum on the amount
of initial investment. (2) The interest shall be payable in half-yearly rests and the last interest
shall be payable along with the principal on maturity. The receiving office specified in Annexure I shall
be authorised to receive applications for the Bonds either directly or through
agents. (1) All payments for Gold Bond shall be accepted in Indian Rupees through
cash or demand draft or cheque or electronic banking. (2) Where payment is made through cheque or demand draft, the same shall be
drawn in favour of the receiving office. (1) The Gold Bond shall be repayable on the expiration of eight years from
the 26th November, 2015, the date of the issue of Gold Bonds: Provided that premature redemption of Gold Bond may
be permitted after fifth year from the date of issue of such Gold Bond on the
date on which interest is payable. (2) On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the
redemption price shall be based on simple average of closing price of gold of
999 purity of previous week (Monday to Friday) published by the India Bullion
and Jewelers' Association Limited. (3) The receiving office shall inform the investor of the date of maturity
of the Gold Bond one month before its maturity. The investment in the Gold Bonds under this Scheme
shall be eligible for Statutory Liquidity Ratio. (1) The Gold Bonds under this Scheme may be used as collateral security for
any loan. (2) The Loan to Value ratio as applicable to any ordinary gold loan mandated
by the Reserve Bank of India shall also apply to the Gold Bond under this
Scheme. (3) The lien on the bond shall be marked in the depository by the authorised
banks. The interest on the Gold Bond shall be taxable as
per the provisions of the Income-tax Act, 1961 (43 of 1961) and the capital
gains tax shall also remain the same as in the case of physical gold. Nomination and its cancellation shall be made in
Form 'D' and Form 'E', respectively, in accordance with the provisions of the
Government Securities Act, 2006 (38 of 2006) and the Government Securities
Regulations, 2007, published in part III, Section 4 of the Gazette of India
dated the 1st December, 2007. The Gold Bonds in the form of Stock Certificate is
transferable by execution of an Instrument of transfer as in Form 'F', in
accordance with the provisions of the Government Securities Act, 2006 (38 of
2006) and the Government Securities Regulations, 2007, published in part III,
Section 4 of the Gazette of India dated the 1st December, 2007. The Gold Bonds shall be eligible for trading from
such date as may be notified by the Reserve Bank of India. Commission for distribution shall be paid at the
rate of rupee one per hundred of the total subscription received by the
receiving offices on the applications received and receiving offices shall
share at least 50% of the commission so received with the agents or sub agents
for the business procured through them. All other terms and conditions specified in the
notification of Government of India in the Ministry of Finance (Department of
Economic Affairs) vide number F. No.4(13) W&M/2008, dated the 8th October,
2008 shall apply to the Gold Bond issued under this scheme.SOVEREIGN GOLD BONDS SCHEME, 2015
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