Sovereign Gold Bond scheme: bonds in grams of gold, 2.5% interest p.a., market linked rupee redemption at maturity. The Sovereign Gold Bond Scheme 2020-21 issues government stock certificates denominated in grams of 999 purity gold, priced by the three day simple average gold closing price, with an online payment discount. Minimum one gram subscriptions and annual investment ceilings vary by investor category; bonds are convertible to demat, tradable, and carry 2.50% p.a. interest payable semi annually. Redemption in rupees at maturity (or permitted early redemption after year five) is based on the three day average gold price. Interest is taxable; capital gains on redemption for individuals are exempt and indexation is available for transfers.