Gold bond issue price set at Rs 4,889 per gram;  the subscription opens on Monday – RiotJs

Gold bond issue price set at Rs 4,889 per gram; the subscription opens on Monday – RiotJs

The issue price of the Sovereign Gold Bond Scheme 2021-22, which will be open for subscription for five days from May 31, was set at Rs 4,889 per gram of gold, the Reserve Bank of India announced on Friday ( RBI).

The Sovereign Gold Bond Scheme 2021-22- Series-III or the third tranche will be open for subscription from May 31 to June 4, 2021.

Previously, the government announced the issuance of the Sovereign Gold Bond (SGB) in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Indian government.

“The face value of the bond based on the simple average closing price of 999 purity gold for the last three working days of the week preceding the subscription period … equals Rs 4,889 per gram of gold”, said the RBI, which issues the bonds on behalf of the central government.

The Indian government, in consultation with the Reserve Bank of India, has decided to offer a discount of 50 rupees per gram less than face value to investors who apply online and payment against demand is made through the digital mode.

“For these investors, the issue price of Gold Bond will be Rs 4,839 per gram of gold,” he said.

The bonds will be sold through banks (except small financial banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognized stock exchanges, namely the National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd.

A total of Rs 25,702 crore has been raised through the SGB Scheme since its inception until the end of March 2021. The RBI had issued 12 tranches of SGB for a total amount of Rs 16,049 crore (32.35 tonnes) in 2020-2021.

The program was launched in November 2015 with the aim of reducing the demand for physical gold and transferring some of the domestic savings – used to buy gold – into financial savings.

The bond price is set in Indian rupees based on the simple average of the closing price of 999 purity gold, published by the India Bullion and Jewelers Association Ltd for the last 3 working days of the week preceding the subscription period.

The bonds will be denominated in multiples of gram (s) of gold with a base unit of one gram. The term of the obligation will be 8 years with an exit option after the 5th year to be exercised on the next interest payment dates.

The minimum authorized investment is one gram of gold. The maximum subscription limit is 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities per fiscal year (April-March).

The Know Your Customer (KYC) standards will be the same as for purchasing physical gold.

The program was launched in November 2015 with the aim of reducing the demand for physical gold and transferring some of the domestic savings – used to buy gold – into financial savings.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

This content was originally published here.

Rate:

0 out of 5 stars(0 ratings)

Subscribe to Our Newsletter

money for gold logo

Learn About Buying and Selling Gold for the Best Prices

Get the latest news and expert advice on Gold!

We don’t spam! Read our privacy policy for more info.

Leave a Reply

Related

Gold Price Forecast:Gold Price Recovery Slows, Treasury Yields Remain Key to Future MovesGold suffered significant…

Read more

Gold futures ended higher Tuesday, with data showing US consumer prices in March rose for the fourth month in a row and…

Read more
Gold Price Forecast: Recapturing $1797 is critical for XAU/USD bulls – Confluence Detector

Gold price is attempting a 1% recovery so far this Monday, heading towards the $1800 mark amid a sight pullback in the…

Read more

Share Great Content for Our Resource Section

About

MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.

Have a question or comment? Email us at: contact@moneyforgold.com

Navigation
MoneyForGold.com
50% Complete

Learn Where to Sell Your Gold for the Best Prices

Free 3-Minute, Practical Stories Delivered to You Everyday!
Buy, Sell, Invest in Gold Today!