Sovereign Gold Bond subscription opens today, issue price fixed at ₹4,889 per gm of gold
The Sovereign Gold Bond Scheme 2021-22- Series-III or the third tranche will open for subscription for five days from Monday and the Reserve Bank of India (RBI) has said its issue price has been fixed at ₹4,889 per gram of gold.
"The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three working days of the week preceding the subscription period...Works out to ₹4,889 per gram of gold," RBI, which issues the bonds on behalf of the central government, said.
Investors applying online and making the payment against the application through digital mode will get a discount of ₹50 per gram less than the nominal value. "For such investors, the issue price of Gold Bond will be ₹4,839 per gram of gold," RBI said.
The bonds, denominated in multiples of gram (s) of gold with a basic unit of 1 gram, are sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges—National Stock Exchange of India Limited and BSE. The bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions. The tenor of the bond is eight years with an exit option after the fifth year to be exercised on the next interest payment dates.
The 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.
RBI said in its annual report released last Thursday that ₹25,702 crore has been raised through the Sovereign Gold Bond (SGB) Scheme since its inception till end of March. In 2020-21, RBI issued twelve tranches of bonds for an aggregate amount of ₹16,049 crore (32.35 tonnes). "A total of ₹25,702 crore (63.32 tonnes) has been raised through the scheme since its inception in November 2015," RBI said in its annual report.
The government announced earlier that it will issue the Sovereign Gold Bond (SGB) in six tranches from May 2021 to September 2021.