Terms & Conditions: Sovereign Gold Bonds

The Client understands that the Client can invest in Sovereign Gold Bonds (SGB), through
the website www.icicidirect.com on the terms and conditions mentioned herein below (in
addition to the other terms and conditions, not contrary to those mentioned herein below,
as stated on www.icicidirect.com).

The client understands that Persons resident in India as defined under Foreign Exchange
Management Act, 1999 are eligible to invest in SGB. Hence, on www.icicidirect.com only
resident individuals and HUFs would be allowed to invest in SGBs. Other client categories
like corporate, partnership firms, LLPs, trusts, etc. would not be allowed to invest.

The Client understands and agrees that ICICI Securities Ltd. (hereinafter referred to as ‘I-Sec’
or ‘ICICI Securities’) reserves all rights to change, modify or alter these terms and conditions
at any point of time with or without notice.

Pursuant to the Client being the client of ICICI Securities and the Power of Attorney executed
by the Client in favour of ICICI Securities with respect to the same, and the applicable rights
and obligations & the terms and conditions thereof, the Client hereby instructs ICICI
Securities (through the Website www.icicidirect.com) to make an investment in SGB subject
to the following additional terms and conditions:

1. Definitions:

“Value Date” shall mean the date on which ICICI BANK receives the funds from the Client for
the purposes of investment in the Sovereign Bonds irrespective of the date of transaction
instruction.

2. The Client may purchase the Sovereign Bonds using the facilities offered by ICICI
Securities on www.icicidirect.com. The Client’s transaction instruction for an investment in
any Sovereign Bonds scheme shall, at all times, be subject to the same being processed by
ICICI BANK and ICICI Securities.

3. The Client hereby expressly authorises and permits ICICI Securities to deal on the Client’s
behalf with the issuer of Sovereign Bonds.

4. The Client hereby specifically confirms and affirms that the power of attorney as executed
by the Client in favour of ICICI Securities entitles and authorises ICICI Securities to apply and
deal in Sovereign Bonds on Client's behalf, and hereby authorises ICICI Securities to provide
all necessary confirmations and representations to this effect, and the Client further agrees
to execute or provide all further deeds, documents, KYC documents like PAN card copy and
address proof copy, instruments or confirmations, in such form, substance or manner, as
desired to confirm and affirm the entitlement and authority to apply and deal in Sovereign
Bonds on Client’s behalf.

5. The transaction instruction may be provided electronically, telephonically or through such

other facility as may be made available to the Client by ICICI Securities from time to time.
Execution of a transaction instruction for a SGB shall be contingent upon the availability at
the time of investment. ICICI Securities, ICICI BANK and /or any of its affiliates shall not be
responsible for the non-availability of a particular SGB at the time of Client placing an order
for investment.

6. It shall be the Client’s responsibility to ensure that any information made available by the
Client to ICICI Securities is true, accurate and free from error. ICICI Securities, ICICI BANK,
and/or their affiliates shall not be responsible for any loss or damage that may result from
any erroneous information, or any omission in the information that is provided by the Client
to ICICI Securities. Neither ICICI Securities nor ICICI BANK shall accept any liability that may
arise as a consequence of the incomplete /incorrect data or information provided by the
Client and/or any error in the execution of an order due to such incomplete/incorrect data.

7. All orders placed by ICICI Securities on behalf of the Client shall be deemed to have been
placed by the Client himself. Neither ICICI Securities nor ICICI BANK shall be liable for any
loss that may be incurred by the Client due to a third party placing orders regarding SGB
through the Website after getting hold of the Client's personal identification details.

8. Demat account credit would be the default option for all customers with active linked
demat a/c. Client may select his/her preferred demat a/c at the time of placing order in case
of multiple demat accounts. Client agrees that Certificate of Holding shall be emailed only to
those customers who hold investment account with ICICI Securities without any linked
demat a/c.

9. The Client agrees that any transaction instruction falling due on a public holiday or a
Saturday would be processed on the next business day. In case the Client wishes to have
the Value Date of the SGB as the date of investment, the Client would have to ensure that
the investment is made within the processing time for each business day as may be
specified by ICICI Securities.

10. The funds of the Client allocated for investment in SGB shall be transferred back to the
Client’s bank account in case the Client’s instruction for application for SGB is not executed
for any reasons whatsoever. ICICI BANK would have the right to reject all or any of the
investment instructions regarding SGB received from the Client and the Client agrees that
ICICI Securities/ ICICI BANK shall not be held liable, in any manner whatsoever, for the
same. No interest shall be payable by ICICI Securities/ICICI Bank on the amount refunded
due to rejection for any reason whatsoever.

11. The client understands that SGBs are issued in denominations of one gram of gold and
in multiples thereof. Minimum investment in the Bond shall be one grams with a maximum
buying limit of 4000 grams per person per fiscal year (April – March). In case of joint
holding, the limit applies to the first applicant. Further, the limit of 4000 grams per financial
year is applicable even if the bond is bought on the exchanges. Client hereby confirms that
he/she has not crossed the maximum limit of 4000 grams in the fiscal year. Joint holders in
the linked demat a/c would by default be joint holders for the purpose of investment in SGB.
In case of investment account without linked demat a/c, only single holder option would be
available through ICICI Securities.
12. The client understands that SGB bear interest at the rate of 2.50 per cent (fixed rate) per
annum on the Nominal Value of Bonds. Interest will be credited semiannually to the bank
account of the investor by the issuer and the last interest will be payable on maturity by the
issuer along with the principal to the bank account furnished by the customer at the time of
buying the bond.

13. The client understands that the tenor of the bond is 8 years. The early
encashment/redemption of the bond is allowed after fifth year from the date of issue on
coupon payment dates. The Bond will be tradable on Exchange platform from the date to be
notified by RBI and can also be transferred to any other eligible investor as per provisions of
Government Securities Act. ICICI Securities reserves the right to enable or disable any listed
security for trading on its website at its own discretion.

14. The Client hereby understands that there may be Capital loss if the market price of gold
declines later post investing in these bonds. Hence, Client fully understands the risk
involved in investing in this instrument may lead to loss of principal amount invested if
market price of SGB at the time of selling/redemption is lower than the market price at the
time of investment.

15. Interest on the SGB shall be taxable as per the provisions of the Income-tax Act, 1961.
The capital gains tax arising on redemption of SGB to an individual has been exempted. The
indexation benefits will be provided to long term capital gains arising to any person on
transfer of bond. Further client understands that TDS will not applicable on the bond.
However, it is the responsibility of the client to comply with the tax laws.

16. The Client hereby authorizes ICICI Securities to make available to ICICI BANK and/or the
Government all such information including Client’s KYC information/documents as may be
required to facilitate the Client’s transacting in SGB herein. ICICI Securities shall ensure that
all correspondence or communication relating to the SGB which is meant for the Client is
either delivered to the Client or displayed on the Website.

17. The Client agrees to directly contact the concerned ICICI Bank branch in case he/she
wishes to redeem/ transfer the SGB or for other services like change of address, nomination,
etc. In case there are changes in any details, such as, account number, email ids, then the
investor must intimate ICICI Bank promptly.

18. ICICI Securities shall be the sole contact point for the Client till the time the electronic
Certificate of Holding or credit in Client’s linked demat a/c is received by the Client, for the
purposes of transactions in SGB conducted on www.icicidirect.com and ICICI Securities
shall not be liable in any manner whatsoever in respect of any transactions or
correspondence relating to the SGB conducted directly between the Client and any third
party.

19. The Client hereby agrees to hold ICICI Securities harmless against all actions, claims and
liabilities that may be incurred by it due to any action initiated or threatened that may be
initiated against it due to the performance of any of their obligations herein and agrees that
ICICI Securities, ICICI BANK and/or its Affiliates shall not be liable for any loss suffered by
the Client on account of non-execution of the order placed due to any reason whatsoever.

20. Client will not be able to appoint nominee online at the time of making application. If the
Client wishes to appoint or change a nominee, the Client will be required to download the
applicable nomination form from www.icicidirect.com, and send the duly completed form to
ICICI Securities or ICICI Bank. In case of demat credit of SGBs, nominee in demat would be
able to claim the SGBs like any other security from the Depository Participant in case of
death of the holder. However, such nominee shall have to follow the transmission process
as specified by RBI for redeeming the SGBs since demat nominee would not be registered
with RBI.

21. In case of the Client Agreement/Rights and Obligations Document entered interalia with
ICICI Securities being terminated for any reason whatsoever, the Client shall intimate ICICI
Securities in writing of the said termination and ICICI Securities shall take the necessary
steps to ensure that the Client may transact directly in the SGB. Subsequent to such
termination, ICICI Securities shall have no further responsibility or obligation in respect of
the Client’s transactions in the
SGB.

22. ICICI Securities does not undertake any responsibility to provide any additional benefits
or products that are advertised and provided by ICICI BANK as a part of any promotional
schemes. The same shall at all times be regulated by such terms and conditions as may be
stipulated by ICICI BANK from time to time.

23. For all correspondences with ICICI Securities the Client shall be required to quote the
Client’s ICICIDirect.com trading/ investment account number.

24. The terms and conditions herein contained are subject otherwise to the terms and
conditions of the Client Agreement and/ or other documents executed by the Client at the
time of account opening.

25. All transactions in SGB shall, at all times, be subject to the rules, regulations and
conditions laid down by the Government of India, RBI or any other regulatory authority,
from time to time governing the issue of SGB.

26. Once Application is made through ICICI securities for SGB, it cannot be cancelled /
modified under any circumstances. Client agrees that an application once submitted cannot
be withdrawn and will not be eligible for any refund of funds so invested.

27. The Client undertakes that ICICI Securities shall not at any time incur any liability whether
to the Client or to anyone claiming through the Client or any other third party with respect to
any damage, losses, costs, expenses, liabilities, or lost profits sustained or alleged to have
been sustained or alleged to be sustained as a result of following the Client's instructions.

28. The Client hereby declares that the Client has read, understood and accepted the
contents of the terms and conditions contained herein and the below given RBI circular
highlighting the instrument details and specifications including the tenor and lock in
requirements. The Client hereby agrees and undertakes not to hold ICICI Securities, ICICI
BANK and/ or their affiliates liable for any transaction instruction processed on the basis of
information provided by the Client.

29. Client is hereby also requested to go through Frequently Asked Questions (FAQs) on
SGBs on www.icicidirect.com before investing in SGB. The Client agrees that the FAQs as
posted on the site, are an integral part of this Terms and Conditions.
The client acknowledges as having read and the understood these FAQs.

H.U.F. Declaration

(Only if applicant is Karta of HUF)

I, the First applicant, do solemnly affirm that I am the Karta of the Hindu Undivided Family in
whose name this application for SGB is being made and as such have full powers to sell,
endorse, transfer or otherwise deal in SGB standing in the name of the said HUF. I hereby
authorize ICICI Securities Limited to submit this declaration, duly certified by an official of
ICICI Securities Limited, to ICICI Bank/ RBI/ relevant authority on my behalf, as a holder of
valid Power of Attorney executed in its favour by me as the Karta of the said HUF.

I / WE have read and accepted the above terms and conditions.

RBI/2018-19/192
IDMD.CDD.No.3392/14.04.050/2018-19

May 30, 2019

The Chairman & Managing Director

All Scheduled Commercial Banks,
(Excluding RRBs)
Designated Post Offices
Stock Holding Corporation of India Ltd. (SHCIL)
National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd.

Dear Sir/Madam,

Sovereign Gold Bond Scheme (SGB) 2019-20- Series I/II/III/IV

Government of India has vide its Notification F.No. 4(7)-W&M/2019 dated May 30, 2019
announced the Sovereign Gold Bond Scheme 2019-20- Series I/II/III/IV. Under the scheme
there will be a distinct series (starting from Series I) for every tranche which will be indicated
on the Bond issued to the investor. The Government of India may, with prior notice, close
the Scheme before the specified period. The terms and conditions of the issuance of the
Bonds shall be as follows:

1. Eligibility for Investment:

The Bonds under this Scheme may be held by a person resident in India, being an
individual, in his capacity as such individual, or on behalf of minor child, or jointly with any
other individual. The bond may also be held by a Trust, Charitable Institution and University.
“Person resident in India” is defined under section 2(v) read with section 2(u) of the Foreign
Exchange Management Act, 1999

2. Form of Security

The Bonds shall be issued in the form of Government of India Stock in accordance with
section 3 of the Government Securities Act, 2006. The investors will be issued a Holding
Certificate (Form C). The Bonds shall be eligible for conversion into de-mat form.

3. Date of Issue

For the applications received during a given week, the bond shall be issued on the second
business day of next week.

4. Denomination

The Bonds shall be denominated in units of one gram of gold and multiples thereof.
Minimum investment in the Bonds shall be one gram with a maximum limit of subscription
of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and
similar entities notified by the government from time to time per fiscal year (April – March),
provided that

i. in case of joint holding, the above limits shall be applicable to the first applicant only;
ii. annual ceiling will include bonds subscribed under different tranches during initial
issuance by Government and those purchased from the secondary market; and
iii. the ceiling on investment will not include the holdings as collateral by banks and
other Financial Institutions.

5. Issue Price

The nominal value of the Bonds shall be fixed in Indian Rupees on the basis of simple
average of closing price of gold of 999 purity published by the India Bullion and Jewelers
Association Limited for the last 3 working days of the week preceding the subscription
period. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value
to those investors applying online and the payment against the application is made through
digital mode.

6. Period of subscription.-
The Subscription of the Gold Bonds under this Scheme shall be open as specified in Section
7 below.

Provided that the Central Government may, with prior notice, close the Scheme at any time
before the period specified above

7. Calendar of Issuance.-

S.No. Tranche Date of Subscription Date of Issuance

1 2019-20 Series I June 03-07, 2019 June 11, 2019
2 2019-20 Series II July 08-12, 2019 July 16, 2019
3 2019-20 Series III August 05-09, 2019 August 14, 2019
4 2019-20 Series IV September 09-13, 2019 September 17, 2019

8. Interest

The Bonds shall bear interest from the date of issue at the rate of 2.50 percent (fixed rate)
per annum on the nominal value. Interest shall be paid in half-yearly rests and the last
interest shall be payable on maturity along with the principal.

9. Receiving Offices

Scheduled Commercial Banks (excluding RRBs), designated Post Offices (as may be
notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges
viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are
authorized to receive applications for the Bonds either directly or through agents.

10. Payment Options

Payment shall be accepted in Indian Rupees through Cash upto a maximum of Rs.20,000/-
or Demand Drafts or Cheque or Electronic banking. Where payment is made through
cheque or demand draft, the same shall be drawn in favour of receiving office.

11. Redemption

i) The Bonds shall be repayable on the expiration of eight years from the date of issue of
Gold bonds. Pre-mature redemption of the Bond is permitted from fifth year of the date of
issue on the interest payment dates.

ii) The redemption price shall be fixed in Indian Rupees and the redemption price shall be
based on simple average of closing price of gold of 999 purity of previous 3 business days
from the date of repayment, published by the India Bullion and Jewelers Association
Limited. The receiving office shall inform the investor of the date of maturity of the Gold
Bond one month before its maturity.

12. Repayment

RBI/depository shall inform the investor of the date of maturity of the Bond one month
before its maturity.

13. Eligibility for Statutory Liquidity Ratio (SLR)

The investment in the Bonds shall be eligible for SLR.

14. Loan against Bonds

The Bonds may be used as collateral for loans. The Loan to Value ratio will be as applicable
to ordinary gold loan mandated by the RBI from time to time. The lien on the Bonds shall be
marked in the depository by the authorized banks. The loan against SGBs would be subject
to decision of the bank/financing agency, and cannot be inferred as a matter of right.

15. Tax Treatment

Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961. The
capital gains tax arising on redemption of SGB to an individual has been exempted. The
indexation benefits will be provided to long term capital gains arising to any person on
transfer of bond

16. Applications

Subscription for the Bonds may be made in the prescribed application form (Form ‘A’) or in
any other form as near as thereto stating clearly the grams of gold and the full name and
address of the applicant. The receiving office shall issue an acknowledgment receipt in Form
‘B’ to the applicant.

17. Nomination

Nomination and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively, in
accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the
Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of
India dated December 1, 2007. An individual Non - resident Indian may get the security
transferred in his name on account of his 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.

18. Transferability
The Bonds shall be transferable by execution of an Instrument of transfer as in Form ‘F’, in
accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the
Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of
India dated December 1, 2007.

19. Tradability of bonds

The Bonds shall be eligible for trading from such date as may be notified by the Reserve
Bank of India.

20. All other terms and conditions specified in the notification of Government of India in the
Ministry of Finance (Department of Economic Affairs) vide number F. No. 4(2) W&M/2018,
dated 27th March 2018 shall apply to the Bonds.

21. Operational guidelines relating to Sovereign Gold Bonds are issued vide circular
IDMD.CDD.No.3391/14.04.050/2018-19 dated May 30, 2019.