Sovereign gold bond scheme opens, chance to buy gold at less price before festive season
The Sovereign Gold Bond Scheme 2020-21 Series VII will be open for subscription till to October 16. Sovereign Gold is issued by the RBI on behalf of the central government.Updated: Oct 12, 2020, 09:08 IST
The seventh tranche of the Sovereign Gold Bond (SGB) Scheme 2020-21 opened on Monday, which enables investors to buy at comparatively less price.
The issue price for the sovereign gold bond has been fixed at Rs 5,051 per gram of gold, the Reserve Bank of India (RBI) had said in a statement on Friday.
The central bank had further said that said the government has decided to offer a discount of Rs 50 per gram less than the nominal value to investors applying online. The payment against the application can be made through digital mode.
“For such investors, the issue price of gold bond will be Rs 5,001 per gram of gold,” the RBI said.
The Sovereign Gold Bond Scheme 2020-21 Series VII will be open for subscription till to October 16.
The issue price for the bonds (Series VI), which were open for subscription from August 31 to September 4, was Rs 5,117 per gram of gold.
The Sovereign Gold Bond Scheme (SGB) 2020-21 Series VIII will open for subscription during November 9 to November 13. The issue price will be announced few days before the subscription opens.
Sovereign Gold Bond 2020-21 is issued by the RBI on behalf of the central government.
The bonds are denominated in multiples of grams of gold with a basic unit of 1 gram and the tenure of the SGB will be eight years with exit option after fifth year to be exercised on the interest payment dates.
The bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.
The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings - used for the purchase of gold - into financial savings.