Sovereign Gold Bond to open for subscription today, issue price fixed at Rs 5,334 per gram

The fifth tranche of Sovereign Gold Bond (SGB) Scheme 2020-21 opens on Monday and the problem value has been fastened at Rs 5,334 per gram.

The Sovereign Gold Bond Scheme 2020-21-Series IV, issued by the Reserve Bank of India (RBI) on behalf of the federal government, shall be open for subscription from August three to August 7. The concern value for Sovereign Gold Bond Scheme collection IV, which had been open for subscription from July 6 to July 10, was Rs 4,852 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 business days of the week preceding the subscription period…works out to Rs 5,334 per gram of gold,” the central financial institution has mentioned.

It mentioned the federal government, in session with RBI, has determined to supply a reduction of Rs 50 per gram lower than the nominal worth to these buyers making use of on-line and the cost towards the applying is made by way of digital mode.

“For such investors, the issue price of the gold bond will be Rs 5,284 per gram of gold,” RBI mentioned.

The central financial institution in April had introduced the federal government will concern Sovereign Gold Bonds (SGBs), a part of the central authorities’s market-borrowing programme, in six tranches starting April 20 until September.

The bonds are denominated in multiples of gram(s) of gold with a primary unit of 1 gram and the tenor of the SGB shall be eight years with exit possibility after the fifth yr to be exercised on the curiosity cost dates.

The bonds are restricted on the market to resident people, Hindu Undivided Families (HUFs), trusts, universities and charitable establishments.

The minimal permissible funding shall be 1 gram of gold and the utmost restrict of subscription shall be 4kg for particular person, 4kg for HUF and 20kg for trusts and related entities per fiscal (April-March).

The gold bond shall be offered by way of banks (besides small finance banks and cost banks), Stock Holding Corporation of India (SHCIL), designated publish workplaces, and recognised inventory exchanges (NSE and BSE).

The Sovereign Gold Bond Scheme was launched in 2015 with an goal to scale back the demand for bodily gold and shift part of the home financial savings, used for the acquisition of gold, into financial savings.

(With company inputs)