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Sovereign Gold Bond scheme to open for subscription from Monday. Details here
Here's everything you need to know about the Sovereign Gold Bond scheme
The eleventh tranche of the Sovereign Gold Bond scheme 2020-21 will be available for five days starting February 1, 2021. "The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. January 27 - 29, 2021 works out to ₹4,912/- (Rupees Four thousand nine hundred and twelve only) per gram of gold," RBI said in a release on Friday.
The government, in consultation with the central bank, has decided to allow a discount of ₹50 per gram from the issue price to those investors who apply online.
Here's everything you need to know about the Sovereign Gold Bond scheme:
Who can buy the bonds?
Resident individuals, Hindu Undivided Families (HUFs), trusts, universities as well as charitable institutions can put in their funds in gold bonds, subject to investment limits.
What is the tenor of the bond?
The tenor of the bond is for a period of 8 years with an exit option after the 5th year to be exercised on the next interest payment dates.
Where can you buy the bonds from?
Eligible entities can purchase the gold bonds from the designated post offices, stock exchanges BSE and NSE, as well as the Stock Holding Corporation.
What is the investment limit on the bonds?
The minimum permissible investment will be 1 gram of gold. The maximum limit of subscription shall be 4kg for individuals, 4kg for HUF and 20kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. In the case of joint holding, the investment limit of 4kg will be applied to the first applicant only.
What is the redemption price?
The redemption price will be in rupees, based on a simple average of the closing price of gold of 999 purity, of the previous three working days published by India Bullion and Jewellers Association (IBJA) Limited.
What KYC documentation is needed?
KYC documents such as Voter ID, Aadhaar PAN or TAN cards and passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the income tax department to individuals and other entities.
