Sovereign Gold Bond: Buy gold at low price from today
Sovereign Gold Bond (SGB) subscription will open from today. SGBs are government-backed securities, denominated in grams of gold. They are an alternative to holding physical gold.
The issue price of Sovereign Gold Bond Scheme 2021-22 Series IV has been fixed at Rs 4,807 per gram of gold. The membership window will be open for five days (July 12 to 16).
Investors can buy bonds by paying the issue price in cash. The bonds will be redeemed in cash on maturity.
The bond is issued by the Reserve Bank of India on behalf of the Government of India.
“The nominal value of the bond is Rs 4,807 per gram of gold,” RBI said in a statement.
The government, in consultation with RBI, provides a discount of Rs 50 per gram to the investors who apply online and the payment against the application is made through digital mode.
“For such investors, the issue price of the gold bond will be Rs 4,757 per gram of gold,” the RBI said.
The bonds are sold through banks (except small finance banks and payments banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognized stock exchanges such as National Stock Exchange of India Limited and BSE.
Bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram. The bond has a tenor of 8 years and will be exercised on the next interest payment dates with exit option after the 5th year.
The minimum permissible investment is 1 gram of gold. The maximum limit of membership in each financial year (April-March) is 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities.
A total of Rs 25,702 crore has been raised since the inception of the SGB scheme till the end of March 2021.
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