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Sovereign Gold Bond scheme opens today. Check details here
The Sovereign Gold Bonds under the 2021-22 Series-VII will be issued in four tranches during October 2021-March 2022.
The government's Sovereign Gold Bond Scheme 2021-22 will open for subscription for five days from Monday, October 25, and will be issued on November 2, the Union finance ministry has said.
The issue price for Sovereign Gold Bonds has been fixed at ₹4,765 per gram of gold.
"Government of India in consultation with the Reserve Bank of India has decided to allow a discount of ₹50 per gram from the issue price to those investors who apply online and the payment is made through digital mode," the ministry said in a statement.
The Sovereign Gold Bonds under the 2021-22 Series-VII will be issued in four tranches during October 2021-March 2022, taking the total to 10. Under the series, bonds were issued in six tranches from May 2021 to September 2021.
The Sovereign Gold Bonds, issued by the Reserve Bank of India (RBI) on behalf of the government of India, will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges—the National Stock Exchange of India and BSE.
The price of bonds 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 Ltd for the last three working days of the week preceding the subscription period. The issue price of the gold bonds will be ₹50 per gram less for those who subscribe online and pay through digital mode.
The tenure of the bond will be for eight years with an exit option after the fifth year to be exercised on the next interest payment dates.
The finance ministry has said that investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value and that the minimum permissible investment will be 1 gram of gold.
The maximum limit of subscription is 4kg for individuals, 4kg for the Hindu Undivided Family (HUF) and 20kg for trusts and similar entities per fiscal (April-March). Know Your Customer (KYC) norms will be the same as that for the purchase of physical gold.
The sovereign gold bond scheme was launched in November 2015 to reduce the demand for physical gold and shift a part of the domestic savings—used for the purchase of gold—into financial savings.
