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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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Showing 202 Submission(s)

Arun Patro 10 years 9 months ago

Good initiative started by govt to save foreign currency on new gold purchase. I have few suggestion/request to be considered. 1. Is their any scheme or regulation for the consumer who are already have yellow metal in their locker. If govt able to bring up this metal out side their locker, hues amount of block money UN earthed. 2. Is this bond issued by bank or pvt vendor. If pvt vendor, what is the authenticity. 3. Is interest rate vary by year/bank/vendor.

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Sudeep Moitra 10 years 9 months ago

To build a Nation with strong economy, which is essential to make India regain our glorious past, when we were World Leaders in all respect, it is imperative that CAD is brought under control. This should hopefully reduce the drainage of our precious foreign currency for purchasing gold. Expect the govt to take more informed decision by benchmarking prices against the most liquid & transparent pricing mechanism in futures market, hence MCX must be considered due to liquidity & acceptibility

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Tejas N 10 years 9 months ago

This seems as the Right Initiative at the right time with markets around the world is extremely uncertain & unpredictable, this hopefully will come as a breather for the emerging economies like India.. BUT the belief on considering benchmark prices for trading in GOLD future should be thought with fair price mechanism be it any futures exchange which has more liquidity & tranperancy in pricing of the yellow metal.

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Mahendra Parmar_2 10 years 9 months ago

Appreciate the BOLD step taken by govt. to cut down on the CAD, & giving options for the investors to invest at the right direction & helping govt. along developing the economy.. all thump us.. my sincere suggestion is to strongly consider MCX GOLD prices which more transperent as far as price discovery is concerned for trading GOLD futures in India.

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Dhruv_9 10 years 9 months ago

Good to know the initiative taken by the govt.to reduce investment in physical gold which is generally noted as dead investments by the prominent economist... since it mentioned as the price can be taken from NCDEX (one of the commodity exchange mainly famous for agricultural commodities).. my honest suggestion would be to take MCX prices which much more prominet name in bullion industry.

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Shikha_7 10 years 9 months ago

This is good initiative by GOI but few points needs to be taken care of. There should be enough incentive for common people to invest in such schemes rather than keeping physical gold. Awareness regarding the gold price over the years (long term), reason behind low rate of interest and liquidity are issues to be addressed. Referal prices to be taken from NCDEX is a welcome step and will encourage other exchanges for innovative contacts.

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vaibhav karangale 10 years 9 months ago

Sovereign Gold Bond is an excellent scheme brought by Shri Arun Jaitly & team Finance Ministry.This would certainly help to control our CAD to permissible limits.I have been following NCDEX & its product since long time.My experience says, all the future contract in NCDEX have transparent pricing mechanism. In fact as far as i know, in Spot market, only NCDEX provides Spot Gold prices.Taking price reference from NCDEX will surely reflet market prices.#GoldBondScheme

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Rajesh Kalro 10 years 9 months ago

I think their should be a base minimum return linked maybe to government bond.

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Kiran Savla 10 years 9 months ago

NCDEX is the only exchange that provides traded Spot Gold Price in India. It is derived in a transparent manner. Hence,it can be the only benchmark for Sovereign Gold Bonds.

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jayaraman sundaram 10 years 9 months ago

People for sentimental reasons may not wish to melt the jewellery for joining the Gold Scheme. But you can persuade them by putting money in this scheme. You can provide that public could buy Gold Bond on the day's prevalent price and avail the tax and interest benefits applicable to equivalent gold in weight. They can be given the option to take the deposit in the form of gold if they wish. This will attract many people who want to invest in gold but do not do so because lack of lockers.

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