Gold bond issue price fixed at Rs 4,639/gm: RBI

Gold bond issue price fixed at Rs 4,639/gm: RBI thumbnail
The issue price for the Sovereign Gold Bond has been fixed at Rs 4,639 per gram of the yellow metal, the Reserve Bank said in a statement on Friday. The Sovereign Gold Bond Scheme 2020-21-Series I will be opened for subscription from April 20 to 24, 2020.Earlier this week, the central bank had said the…

The issue price for the Sovereign Gold Bond has been fixed at Rs 4,639 per gram of the yellow metal, the Reserve Bank said in a statement on Friday. The Sovereign Gold Bond Scheme 2020-21-Series I will be opened for subscription from April 20 to 24, 2020.Earlier this week, the central bank had said the government will issue Sovereign Gold Bonds (SGBs) in six tranches beginning April 20 till September.Sovereign Gold Bond 2020-21 will be issued by the Reserve Bank of India (RBI) on behalf of the government.”The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period…works out to Rs 4,639 per gram of gold,” the RBI said.Also read: Gold prices likely to touch Rs 50,000-55,000 by end of 2020It further said the government has also decided to offer a discount of Rs 50 per gram to those investors applying online and where payment against the application is made through digital mode.For such investors, the issue price of bond will be Rs 4,589 per gram of gold.The bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram and the tenor of the SGB will be eight years with exit option after fifth year to be exercised on the interest payment dates.The bonds are restricted for sale to resident individuals, HUFs, trusts, universities and charitable institutions.Also read: Gold slips Rs 1,215 to Rs 45,713, silver also slidesThe minimum permissible investment will be 1 gram of gold and the maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUFs and 20 Kg for trusts and similar entities per fiscal (April-March).The gold bond will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India (SHCIL), designated post offices, and recognised stock exchanges (NSE and BSE).The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings — used for the purchase of gold — into financial savings.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!
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