E-Paper
Sovereign Gold Bond Scheme’s 7th tranche opens on Monday. All you need to know
The Sovereign Gold Bond (SGB) Scheme 2020-21 Series VIII will open for subscription in the second week of November and its issue price will be announced a few days before the subscription opens.
The seventh tranche of the Sovereign Gold Bond (SGB) Scheme 2020-21 will open for subscription from Monday and close on Friday. The Reserve Bank of India (RBI) has said the issue price for the Sovereign Gold Bond (SGB) Scheme 2020-21 Series VII has been fixed at ₹5,051 per gram of gold.
The SGB Scheme 2020-21 Series VIII will open for subscription from November 9 to November 13 and its issue price will be announced a few days before the subscription opens. The issue price for the SGB Scheme Series VI was ₹5,117 per gram of gold. It has opened for subscription from August 31 to September 4.
Here’s what you need to know about SGB Scheme 2020-21 Series VII:
1. The Reserve Bank of India (RBI), which issues the Sovereign Gold Bond Scheme, has said the government has decided to offer a discount of ₹50 per gram less than the nominal value to investors applying online . The payment against the application can be made through digital mode.
2. “For such investors, the issue price of gold bond will be ₹5,001 per gram of gold,” the central bank said.
3. The bonds are denominated in multiples of grams of gold with a basic unit of 1 gram
4. The tenure of the SGB is eight years with exit option after fifth year to be exercised on the interest payment dates.
5. The Sovereign Gold Bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.
6. The minimum permissible investment is 1 gram of gold and the maximum limit of subscription is 4kg for individual, 4kg for HUF and 20kg for trusts and similar entities per fiscal or between April and March.
7. Banks, except small finance banks and payment banks, Stock Holding Corporation of India (SHCIL), designated post offices, and recognised stock exchanges (NSE and BSE) sell the Sovereign Gold Bonds.
8. A fixed-rate of 2.5% per annum is applicable on SGBs and is payable semi-annually.
9. The interest on Sovereign Gold Bonds is taxable but the capital gains arising out of redemption are exempted for individual investors.
10. A total of ₹9,652.78 crore (30.98 tonnes) has been raised through the sovereign gold bonds scheme in 37 tranches since November 2015, RBI has said in its annual report 2019-20. Ten tranches of Sovereign Gold Bonds for an aggregate amount of ₹2,316.37 crore (6.13 tonnes) have been issued by RBI during 2019-20.
(With agency inputs)
