Draft Sovereign Gold Bond Scheme

Draft Sovereign Gold Bond Scheme
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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Vishal Gandhi 5 years 2 weeks ago

Gold Bonds can also provide a window to convert unexplained income. since while drafting gold bond proper care is to be taken that only gold bought from legitimate sources is taken into account. the government can ask for additional documents for gold bonds in excess of say 100 gms. this will help to curb black money circulation through gold bonds. the gold bonds should never be bearer bonds

sunil sanadhya 5 years 2 weeks ago

महोदय, आम जनता से सुझाव मांगने पर आभार। संलग्न PDF फ़ारमैट में भविष्य हेतु एक योजना प्रस्तावित की गई है जो अपने bluerpint प्रारूप में है। प्रचलित क़ानूनों के सापेक्ष इसका परीक्षण करावा कर अध्ययन करवाएँ तो कुछ तो नया अवश्य मिलेगा। धन्यवाद।

Angshuman Purohit 5 years 2 weeks ago

Policy makers are rarely known to be ‘innovative’ in approach. This draft is one of those ‘rare’ occasions. The ace class of the proverbial ‘steel frame’ of India is in full display here. And the drafting has been smart indeed! No forum participants till now have been able to identify the smart move.

Everything including complicated concepts like expensive hedging & the sovereign assuming that risk, price risk of gold is smart drafting. Nothing like that exists at all. Read on for details.

Dr Krishna Moorthy D 5 years 2 weeks ago

Whether gold ornaments can be invested in banks for a fixed term to get a min./nominal interest?instead of going as dead property in many houses,can it help in building our nation?

MUTHU PRASANTH 5 years 2 weeks ago

Online Gold trade market, something similar to stock market, can be established.
It should be designed to facilitate people electronically purchase gold online, as and when he have money. The gold is saved in RBI monitored place. He can add and save as much gold as he could, in his account. When he need the gold, the amount(weight) of gold he demand should be dispatched to him.
This online gold trading and saving market could increase the amount of gold stocked by RBI.

Muthoot Pappachan Group 5 years 2 weeks ago

The proposed Sovereign Gold Bond Scheme is a very positive and welcome initiative to help divert physical gold savings to paper gold and/ or postpone the purchase of physical gold jewellery, thereby giving a long term direction to the Indian gold sector as well as help reduce India’s overdependence on gold imports. However the attached points (PDF) need to be considered to ensure the success of the proposed scheme.

T T SAMBANDAM 5 years 2 weeks ago

Basically we have to understand as in what form the gold are purchased by Indians and what is the price they are paying for it. Unless we know this, the proposed scheme may not be of success, since already a similar scheme is in practice thru SBI and it has failed. The Majority of the gold are purchased in Jewellery form by the Indians and they will not get back the same jewellery and further as all of us aware the seller always collects 20% to 25% extra towards wastage and making charges.