Government to issue Sovereign Gold Bonds with effect from 26th November, 2015; Bonds to be sold through banks and designated post offices
Government to issue Sovereign Gold Bonds with
effect from 26th November, 2015; Bonds to be sold through banks and designated
post offices
Government of India, in consultation with Reserve Bank of India (RBI), has
decided to issue Sovereign Gold Bonds. The Bonds will be issued on November 26, 2015. Applications for the bond will be accepted
from November 05, 2015 to November 20, 2015. The Bonds will be sold through
banks and designated post offices as may be notified. The borrowing through
issuance of the Bond will form part of market borrowing programme of Government
of India.
It may be recalled that the Finance Minister had announced in Union Budget
2015-16 about developing a financial asset, Sovereign Gold Bond, as an
alternative to purchasing metal gold.
The major features of the Bond are given below:
|
Sl. No.
|
Item
|
Details
|
|
1
|
Product name
|
Sovereign Gold Bond
|
|
2
|
Issuance
|
To be issued by Reserve Bank India on behalf of the
Government of India.
|
|
3
|
Eligibility
|
The Bonds will be restricted for sale to resident
Indian entities including individuals, HUFs, trusts, Universities, charitable
institutions.
|
|
4
|
Denomination
|
The Bonds will be denominated in multiples of
gram(s) of gold with a basic unit of 1 gram.
|
|
5
|
Tenor
|
The tenor of the Bond will be for a period of 8 years
with exit option from 5th year to be exercised on the
interest payment dates.
|
|
6
|
Minimum size
|
Minimum permissible investment will be 2 units (i.e. 2
grams of gold).
|
|
7
|
Maximum limit
|
The maximum amount subscribed by an entity will not be
more than 500 grams per person per fiscal year (April-March). A
self-declaration to this effect will be obtained.
|
|
8
|
Joint holder
|
In case of joint holding, the investment limit of 500
grams will be applied to the first applicant only.
|
|
9
|
Frequency
|
The Bonds will be issued in tranches. Each tranche will
be kept open for a period to be notified. The issuance date will also be
specified in the notification.
|
|
10
|
Issue price
|
Price of Bond will be fixed in Indian Rupees on the
basis of the previous week’s (Monday–Friday) simple average of closing price
of gold of 999 purity published by the India Bullion and Jewellers
Association Ltd. (IBJA).
|
|
11
|
Payment option
|
Payment for the Bonds will be through electronic funds
transfer/cash payment/ cheque/ demand draft.
|
|
12
|
Issuance form
|
Government of India Stock under GS Act, 2006. The
investors will be issued a Stock/Holding Certificate. The Bonds are eligible
for conversion into demat form.
|
|
13
|
Redemption price
|
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.
|
|
14
|
Sales channel
|
Bonds will be sold through banks and designated Post
Offices, as may be notified, either directly or through agents.
|
|
15
|
Interest rate
|
The investors will be compensated at a fixed rate of
2.75 per cent per annum payable semi-annually on the initial value of
investment.
|
|
16
|
Collateral
|
Bonds can be used as collateral for loans. The
loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated
by the Reserve Bank from time to time.
|
|
17
|
KYC Documentation
|
Know-your-customer (KYC) norms will be the same as that
for purchase of physical gold. KYC documents such as Voter ID, Aadhaar
card/PAN or TAN /Passport will be required.
|
|
18
|
Tax treatment
|
The interest on Gold Bonds shall be taxable as per the
provision of Income Tax Act, 1961 (43 of 1961) and the capital gains tax
shall also remain same as in the case of physical gold.
|
|
19
|
Tradability
|
Bonds will be tradable on exchanges/NDS-OM from a date
to be notified by RBI.
|
|
20
|
SLR eligibility
|
The Bonds will be eligible for Statutory Liquidity
Ratio.
|
|
21
|
Commission
|
Commission for distribution shall be paid at the rate
of 1% of the subscription amount.
|
*************
Change in Tariff Value of Crude Palm Oil, RBD Palm
Oil, Others – Palm Oil, Crude Palmolein, RBD Palmolein, Others – Palmolein,
Crude Soyabean Oil, Brass Scrap (All Grades), Poppy Seeds, Areca Nuts, Gold and
Silver Notified
In exercise of the
powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52
of 1962), the Central Board of Excise & Customs, being satisfied that it is
necessary and expedient so to do, hereby makes the following amendment in the
notification of the Government of India in the Ministry of Finance (Department
of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August,
2001, published in the Gazette of India, Extraordinary, Part-II, Section-3,
Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August,
2001, namely:-
In the said
notification, for TABLE-1, TABLE-2, and TABLE-3 the
following Tables shall be substituted namely:-
TABLE-1
|
Sl. No.
|
Chapter/ heading/ sub-heading/tariff item
|
Description of goods
|
Tariff value US $
(Per Metric Tonne)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
1511 10 00
|
Crude Palm Oil
|
575
|
|
2
|
1511 90 10
|
RBD Palm Oil
|
617
|
|
3
|
1511 90 90
|
Others – Palm Oil
|
596
|
|
4
|
1511 10 00
|
Crude Palmolein
|
631
|
|
5
|
1511 90 20
|
RBD Palmolein
|
634
|
|
6
|
1511 90 90
|
Others – Palmolein
|
633
|
|
7
|
1507 10 00
|
Crude Soya bean Oil
|
754
|
|
8
|
7404 00 22
|
Brass Scrap (all grades)
|
3117
|
|
9
|
1207 91 00
|
Poppy seeds
|
2648
|
TABLE-2
|
Sl. No.
|
Chapter/ heading/ sub-heading/tariff item
|
Description of goods
|
Tariff value
(US $)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
71 or 98
|
Gold, in any form, in respect of which the benefit of
entries at serial number 321 and 323 of the Notification No. 12/2012-Customs
dated 17.03.2012 is availed
|
373 per 10 grams
|
|
2
|
71 or 98
|
Silver, in any form, in respect of which the benefit of
entries at serial number 322 and 324 of the Notification No. 12/2012-Customs
dated 17.03.2012 is availed
|
517 per kilogram
|
TABLE-3
|
Sl. No.
|
Chapter/ heading/ sub-heading/tariff item
|
Description of goods
|
Tariff value
(US $ Per Metric Tons )
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
080280
|
Areca nuts
|
2662
|
*****
Government conducts raids against Illegal import
and Sale of Chinese Fire Crackers at godowns in Mumbai, Bangalore, Chennai,
Trichy, Vijawada, Madurai, Ludhiana etc
In pursuance of specific intelligence regarding large scale smuggling of
sub-standard, poor quality Chinese make firecrackers by way of concealment and
mis-declaration, strict surveillance was maintained in the local markets.
Import of fire crackers in India is restricted in terms of Foreign Trade Policy
by Ministry of Commerce. Import of firecrackers is allowed against a license
issued by the Ministry of Commerce. The Ministry of Commerce has not issued any
license in this regard, so far to any importer. Besides harming the domestic
industry, fireworks of foreign origin are hazardous in nature and jeopardize
public safety and health.
Accordingly, in a country wide operation undertaken on 28.10.2015 to detect
and seize the offending goods, the officers of Directorate of Revenue
Intelligence raided more than 100 godowns and retail outlets in Mumbai,
Bangalore, Chennai, Trichy, Vijawada, Madurai, Ludhiana etc. During the course
of operation, various types of Chinese make firecrackers have been recovered
having total value of more than Rs. 2 Crore. The recovered Chinese make
firecrackers have been seized under the provisions of the Customs Act, 1962.
Further investigations are in progress.
Post a Comment