Operational Guidelines on Sovereign Gold Bonds

May 31, 2019 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) on May 30, 2019, has issued Operational guidelines on Sovereign Gold Bonds. 

The Operational guidelines are as under:

 Application:

Application forms from investors will be received at branches during normal banking hours on the weeks of subscription. Receiving Offices need to ensure that the application is complete in all respects as incomplete applications are liable to be rejected. The Receiving Offices may make arrangements to enable the investors to apply online, in the interest of better customer service.

 Joint holding and nomination:

Multiple joint holders and nominees (of first holder) are permitted. An individual Non - resident Indian may get the security transferred in his/her name on account of he/she being a nominee of a deceased investor provided that:

i.the Non-Resident investor shall need to hold the security till early redemption or till maturity; and

ii.the interest and maturity proceeds of the investment shall not be repatriable.

 Know-Your-Customer (KYC) requirements:

Every application must be accompanied by the ‘PAN details’ issued by the Income Tax Department to the investor(s).

 Cancellation:

Cancellation of application is permitted till the closure of the issue, i.e. until Friday of the particular week of subscription. Part cancellation of submitted request for purchase of gold bonds is not permitted.

 Lien marking:

As the bonds are government securities, lien marking, etc. will be as per the extant legal provisions of Government Securities Act, 2006 and rules framed there under.

 Processing through RBI’s e-Kuber system:

Sovereign Gold Bonds will be available for subscription at the Receiving Offices through RBI’s e- Kuber system. The e-Kuber system can be accessed either through INFINET or Internet.

 Printing Certificates of Holding

 Receiving Offices will “own” the customer and provide necessary services with regards to this bond

 Tradability:

The Bonds shall be eligible for trading on a date notified by the Reserve Bank of India.

[Notification No. IDMD.CDD.No.3391/14.04.050/2018-19(RBI/2018-19/193)]

Click here to download the Notification.


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