Explanation:

The government is set to issue series IV sovereign gold bond scheme on 17 March.
 For distribution of the bonds, commission shall be paid at 1% of the total subscription received by the receiving offices. Receiving offices shall further share minimum 50% of the commission received with the agents or sub-agents for the business procured through them.

Important highlights:

•  Eligibility for Investment: The bonds under this scheme may be held by a person resident in India, in his capacity as such individual, or on behalf of a minor child, or jointly with any other individual. The bond may also be held by a trust, charitable institution, and university.
•  Date of Issue: Date of issuance shall be March 17, 2017.
•  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 five hundred grams per person per fiscal year.
•   Issue Price: Price 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 Jewellers Association Limited for the week (Monday to Friday) preceding the subscription period. The issue price shall be Rs 50 per gram less than the nominal value.
•  Interest:  The bonds shall bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest shall be paid in half-yearly rests and the last interest shall be payable on maturity along with the principal.
•  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 Ltd and Bombay Stock Exchange Ltd. are authorized to receive applications for the bonds either directly or through agents.
•   Payment Options: Payment shall be accepted in Indian rupees through cash up to a maximum of Rs 20,000 or demand drafts or cheque or electronic banking. Where payment is made through a cheque or demand draft, the same shall be drawn in favour of the receiving office.
•   Repayment: The receiving office shall inform the investor of the date of maturity of the bond one month before its maturity.
•  Eligibility for Statutory Liquidity Ratio (SLR): Investment in the bonds shall be eligible for SLR.