Sovereign Gold Bond Scheme IV: Issue price constant at Rs 4,807 per gram


The issue price for Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from July 12, has been constant at Rs 4,807 per gram of gold, the Reserve Bank of India said on Friday.

The Sovereign Gold Bond Scheme 2021-22 – Series IV or the fourth tranche will be open for subscription from July 12 – 16, 2021.

“The nominal value of the bond…works out to Rs 4,807 per gram of gold,” the RBI said.

The government, in consultation with the Reserve Bank of India (RBI), also provides a reduction of Rs 50 per gram to those investors applying online and the payment against the application is made through digital mode.

“For such investors, the issue price of Gold Bond will be Rs 4,757 per gram of gold,” the RBI said.

The issue price for Series III, which used to be open for subscription all through May 31 to June 4, 2021, used to be Rs 4,889/gm.

Earlier, the government had announced it’ll issue the Sovereign Gold Bond (SGB) in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India.

The bonds will be sold through banks (excluding small finance banks and payment banks), Inventory Holding Corporation of India Limited (SHCIL), designated post offices, and recognised inventory exchanges viz., National Inventory Exchange of India Limited and BSE.

A complete of Rs 25,702 crore has been raised through the SGB Scheme till end-March 2021 since its inception.

The Reserve Bank had issued 12 tranches of SGB for an aggregate amount of Rs 16,049 crore (32.35 tonnes) all through 2020-21.

The scheme used to be launched in November 2015 with an objective to minimize the demand for physical gold and shift part of the domestic savings — used for the purchase of the yellow metal — into financial savings.

Price of the bond is constant in Indian rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Organization Limited for the final three working days of the week previous the subscription period.

The bonds are denominated in multiples of gram (s) of gold with a basic unit of 1 gram. The tenor of the bond is for a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates.

Minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kg for individual, 4 kg for Hindu Undivided Circle of relatives (HUF) and 20 kg for trusts and similar entities per fiscal (April-March).

The know-your-customer (KYC) norms are the same as that for purchase of physical gold.

(Only the headline and picture of this outline may have been reworked by the Trade Standard staff; the remainder of the satisfied is auto-generated from a syndicated feed.)

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