The issue price for Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from 12 July, has been fixed at ₹4,807 per gram, the Reserve Bank of India said today.
The Sovereign Gold Bond Scheme 2021-22 - Series IV or the fourth tranche will be open for subscription from July 12 - 16, 2021.
The government has decided to issue the bonds in six tranches from May 2021 to September this year. The RBI will issue the bonds on behalf of the Central Government.
"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, i.e. July 07, July 08 and July 09, 2021 works out to ₹4,807 per gram of gold," the central bank notification read.
The Centre, in consultation with the RBI, has decided to offer a discount of ₹50 per gram less than 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 ₹4,757 per gram of gold," it added.
The issue price for Series III, which was open for subscription during May 31 to June 4, 2021, was ₹4,889/gm.
The bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and BSE.
A total of ₹25,702 crore has been raised through the SGB Scheme till end-March 2021 since its inception.
The RBI had issued 12 tranches of SGB for an aggregate amount of ₹16,049 crore (32.35 tonnes) during 2020-21.
The 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 the yellow metal -- into financial savings.
The price of the bond is fixed in Indian rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last three working days of the week preceding 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.
The minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kg for individuals, 4 kg for Hindu Undivided Family (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 the purchase of physical gold.
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Sovereign gold bond opens 12 July; issue price fixed at ₹4,807/gm - Mint
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