Sovereign Gold Bond Scheme opens on Monday. Issue price, other details here
Sovereign Gold Bond price is fixed in Indian rupees on the basis of a simple average of the closing price of gold of 999 purity.
The Sovereign Gold Bond (SGB) Scheme 2021-22 - Series VIII will open for subscription for five days from Monday, November 29, according to the Reserve Bank of India (RBI).
The central bank, which issues the bonds on behalf of the government, said on Friday that the issue price for Sovereign Gold Bond Scheme 2021-22 - Series VIII has been fixed at ₹4,791 per gram of gold, the Reserve Bank of India said on Friday.
"The nominal value of the bond...works out to ₹4,791 per gram of gold," the RBI said.
The government, in consultation with RBI, has also decided to offer a discount of ₹50 per gram on the nominal value to those investors applying online and the payment against the application is made through digital mode.
"For such investors, the issue price of Gold Bond will be ₹4,741 per gram of gold," it added.
The issue price of Sovereign Gold Bond - Series VII was ₹4,761 per gram of gold.
The price of the Sovereign Gold Bond is fixed in Indian rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.
Investors can buy Sovereign Gold Bond from banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges—the National Stock Exchange of India Limited and BSE.
The bonds are denominated in multiples of gram (s) of gold with a basic unit of 1 gram. The tenor of the bond is for a period of eight years and investors have an exit option after the fifth year, which is to be exercised on the next interest payment dates.
The minimum permissible investment is 1 gram of gold and the maximum limit of subscription is 4 kilograms for individuals, 4kg for the Hindu Undivided Family or HUF and 20kg for trusts and similar entities every fiscal year from April to March.
The Know Your Customer (KYC) norms will be the same as that for purchase of physical gold.
The government launched the Sovereign Gold Bond 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.