I: Introduction
The Sovereign Gold Bond (SGB) Scheme, initiated by the Government of India on October 30, 2015, serves as an avenue for investors to own gold in a financial instrument form. Governed by the Government Securities Act, 2006, these bonds provide a unique investment opportunity. In this article, we present consolidated procedural guidelines for the efficient handling of the Sovereign Gold Bond Scheme.
II: Receiving Offices and Designated Entities
Nodal Branches/Offices
Receiving Offices (ROs) play a pivotal role in the SGB Scheme. They are authorized entities, including Scheduled Commercial Banks, Stock Holding Corporation of India Ltd. (SHCIL), designated Post Offices, and recognized stock exchanges such as BSE and NSE.
Application Process
- ROs are empowered to receive application forms directly or through agents during specified subscription periods.
- Applications must be submitted in Form A and accompanied by PAN details issued by the Income Tax Department.
- Online application facilities should be provided for enhanced customer service, ensuring completeness of information.
Acknowledgment and Confirmation
- Upon receiving a complete application, ROs issue an acknowledgment receipt in Form B.
- An immediate confirmation is generated through the RBI’s E-Kuber portal, ensuring transparency and accuracy.
Partial Cancellation and Refunds
- Cancellation of bonds is allowed until the closure of the issue, but partial cancellation is not permitted.
- ROs are mandated to ensure timely refund of rejected applications, adhering to penalty provisions for delays.
III: Allotment, Certificates of Holding, and Nomination
Allotment Process
- Certificates of Holding are generated by the RBI on the date of allotment, with electronic copies sent to customers.
- ROs can download certificates from the E-Kuber portal, emphasizing the transferable nature of SGBs.
Nomination
- Nomination and its cancellation follow the guidelines specified in the Government Securities Act, 2006.
- Multiple nominees (up to two) can be designated, with the facility to add or cancel nominations.
Transfer of Bonds
- Transfer of bonds is facilitated through the execution of Form 'F' for stock certificates or market transactions for dematerialized bonds.
- The existing nomination, if any, is canceled on transfer, and the RO handles the transfer request through the E-Kuber portal.
IV: Forms of Holding, Dematerialization, and Rematerialization
Holding Options
- SGBs can be held in Bond Ledger Account (BLA), Retail Direct Gilt Account (RDG Account), or demat account with depositories (NSDL/CDSL).
Dematerialization and Rematerialization
- The conversion of SGBs to demat form or vice versa is facilitated through requests processed by the Mumbai PDO, RBI.
- Timely servicing of dematerialized bonds is the responsibility of the respective Depositories (NSDL/CDSL).
V: Preservation of Records and Contact Details
Record Preservation
- ROs and Depositories are required to preserve application forms and related requests until the maturity of the bonds.
- Premature redemption requests must be preserved for three years from the date of payment.
Contact for Grievances
- Redressal of customer complaints follows a hierarchical process within ROs, with an escalation matrix to address grievances.
- Investors can approach the RBI for unresolved issues, emphasizing transparency and accountability.
VI: Conclusion
These consolidated procedural guidelines aim to streamline the functioning of the Sovereign Gold Bond Scheme, ensuring transparency, efficiency, and a seamless experience for investors. Adherence to these guidelines by all stakeholders is crucial for the successful operation of the scheme and the satisfaction of investors.
