Gold sovereign bond program opens on Monday: issue price, other details

The issue price of the next tranche of the Sovereign Gold Bond Scheme 2021-22, which will be open for subscription for five days from October 25, has been set at ??4,765 per gram of gold, the finance ministry said on Saturday.

The Sovereign Gold Bond Scheme 2021-22 – Series VII will be open for subscription for the period from October 25 to October 29, 2021.

The government, in consultation with the Reserve Bank of India (RBI), is also granting a rebate of ??50 per gram less than face value for investors applying online and where payment against demand is made digitally.

“For these investors, the issue price of the gold bond will be ??4,715 per gram of gold, ”the RBI said.

Pursuant to Indian Government Notice No. 4 (5) -B (W&M) / 2021 dated October 21, 2021, the 2021-22 Gold Bonds (Series VII) will be open for subscription during the period from October 25 to 29, 2021 with Settlement date November 02, 2021.

The issue price of the Bond during the subscription period will be ??4,765 (four thousand seven hundred and sixty five rupees only) – per gram, as also released by RBI in its press release dated October 22, 2021.

The Government of India, in consultation with the Reserve Bank of India, has decided to allow a discount of 50 (five rupees only) per gram on the issue price to investors who apply online and payment is made in digital mode. For these investors, the issue price of the gold bond will be ??4,715 (four thousand seven hundred and fifteen rupees only) per gram of gold.

Bonds are sold through banks (except small finance and payment banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognized exchanges National Stock Exchange of India Limited and BSE.

A total of ??25,702 crore were raised through the SGB program from its inception until the end of March 2021. The Reserve Bank had issued 12 tranches of SGB for a total amount of ??16,049 crore (32.35 tons) in 2020-21.

The device was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the domestic savings used for the purchase of the yellow metal to financial savings.

The bond price is set in Indian rupees based on the simple average of the closing prices of 999 purity gold, published by the India Bullion and Jewelers Association Limited for the last three working days of the previous week. the subscription period.

Bonds are denominated in multiples of gram (s) of gold with a base unit of 1 gram. The term of the obligation is 8 years with an exit option after the 5th year to be exercised at the next interest payment dates.

The minimum authorized investment is 1 gram of gold. The maximum subscription limit is 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities by fiscal (April-March).

The Know Your Customer (KYC) standards are the same as for the purchase of physical gold.

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