The issue of the seventh series of the Sovereign Gold Bonds (SGBs) scheme 2021-22 was announced by the Reserve Bank of India. The subscription for gold bonds opens for the public from October 25, 2021, and will close on October 25, 2021.
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, i.e. October 20, October 21 and October 22, 2021, works out to ₹4,761/- (Rupees Four thousand seven hundred and sixty-one only) per gram of gold.
In consultation with RBI, the Government of India has decided to offer a discount of ₹50/- per gram on the nominal value 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 ₹4,711/- (Rupees Four thousand seven hundred and eleven only) per gram of gold. The issue price for offline subscribers is ₹4,761/- (Rupees Four thousand seven hundred and sixty-one only) per gram of gold.
The bonds issued will be denominated in multiples of gram (s) of gold with a basic unit of 1 gram. The tenor of the bond will be for 8 years with an exit option after the 5th year to be exercised on the next interest payment dates. The minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kilograms for individuals, 4 kilograms for HUF, and 20 kilograms for trusts and similar entities per fiscal (April-March).
The bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and National Stock Exchange and BSE. To know how to subscribe for Sovereign Gold Bonds click: guidelines
To know more about the advantage of sovereign gold bond over the physical form of gold click: Advantage,
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