Latest News | Gold Bond Issue Price Fixed at Rs 4,677/gm of Gold

Mumbai, June 5 (PTI) The issue price for Sovereign Gold Bond has been fixed at Rs 4,677 per gram of gold, the Reserve Bank of India said in a statement on Friday.

The Sovereign Gold Bond Scheme 2020-21-Series III will be opened for subscription for the period from June 08–June 12, 2020.

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The central bank in April had announced that the government will issue Sovereign Gold Bonds in six tranches from April 20 till September.

Sovereign Gold Bonds 2020-21 will be issued by Reserve Bank India on behalf of the Government of India.

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"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. June 03 – June 05, 2020 works out to Rs 4,677 per gram of gold," the RBI said.

It further said the government has also decided to offer a discount of Rs 50 per gram on the nominal value to investors applying online, and making the payment against application through digital mode.

For such investors, the issue price of bond will be Rs 4,627 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 Sovereign Gold Bond will be eight years with exit option after fifth year to be exercised on interest payment dates.

The bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.

The minimum permissible investment will be 1 gram of gold, and the maximum limit of subscription shall be 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).

The gold bonds 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 purchase of gold, into financial savings.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)