The Sovereign Gold Bond Scheme, Series V or the fifth tranche, will open for subscription for five days from Monday, August 9, the government has said. “The issue price of the Bond during the subscription period shall be ₹4,790 per gram,” the Union ministry of finance said in a statement about the government-run Sovereign Gold Bond Scheme, under which investors get a chance to buy the precious metal in a non-physical form.
The issue price for Sovereign Gold Bond Scheme Series IV, which was open for subscription from July 12 to July 16, was ₹4,807 per gram. The government has fixed the settlement date of August 17, 2021, for the fifth tranche of the Sovereign Gold Bond Scheme.
Investors applying online and those making a payment against the application through digital mode get a discount of ₹50 per gram. “For such investors, the issue price of Gold Bond will be ₹4,740 per gram of gold,” the Reserve Bank of India (RBI) said in a separate statement.
The government has said it will issue the Sovereign Gold Bond Scheme in six tranches from May 2021 to September 2021.
Sovereign Gold Bond, which is issued by RBI on the government’s behalf, are sold through banks, except small finance banks and payment banks, the Stock Holding Corporation of India Limited (SHCIL), designated post offices, and the National Stock Exchange of India Limited and BSE. A total of ₹25,702 crore has been raised through the SGB Scheme till March-end 2021 since its inception.
The bond’s price is fixed in Indian rupees on the basis of a simple average of the closing price of gold of 999 purity as published by the India Bullion and Jewellers Association Limited for the last three working days of the week preceding the subscription period. The bonds are denominated in multiples of a gram of gold with a basic unit of 1 gram.
The bond’s tenor is for a period of eight years with exit options after the fifth year to be exercised on the next interest payment dates. The minimum permissible investment is 1 gram of gold.
The maximum limit of the subscription is 4kg for individuals, 4kg for Hindu Undivided Family (HUF) and 20kg for trusts and similar entities per fiscal (April-March). The Know-Your-Customer (KYC) rules are the same as those for buying physical gold.
RBI issued 12 tranches of Sovereign Gold Bond for an aggregate amount of ₹16,049 crore and 32.35 tonnes during 2020-21.
For all the latest business News Click Here
