New Delhi, May 23: The Government of India, in discussion with the Reserve Bank of India (RBI), has decided to issue Sovereign Gold Bonds. The Sovereign Gold Bonds will be issued in 6 tranches from May'21 to September'21. The Series-I or 1st tranche of Sovereign Gold Bond Scheme 2021-22 was opened for subscription from 17 to 21 May.
The Series-II or 2nd tranche of Sovereign Gold Bond Scheme 2021-22 will be open for subscription from 24 to 28 May. The issue price for the series-II or second tranche of the sovereign gold bond issue has been decided at Rs 4,842 per gram, the Reserve Bank of India said on Friday.
"The nominal value of the bond is 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, works out to Rs 4,842 per gram of gold," the Reserve Bank of India said. Sovereign Gold Bond Scheme 2021-22: Check Important Dates of Subscription and Issuance.
In consultation with the central bank, “the government of India has offered a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. After the discount, the issue price of the gold bond will be Rs 4,792 per gram of gold for these investors," the RBI stated.
Bonds will be sold through Nationalised Banks, Scheduled Private Banks, Post Offices, Stock Holding Corporation of India Ltd, Scheduled Foreign Banks, and the authorized stock exchanges either directly or through their agents.
Sovereign Gold Bonds can be bought by Individuals, (Hindu Undivided Families) HUFs, Trusts, Charitable Institutions and Universities. The minimum investment in the Bond will be one gram with a maximum limit of subscription of 4 Kg for individuals and HUF respectively, and 20 Kg for trusts and other entities. Know Your Customer (KYC) norms will be the same for sovereign gold bonds as that for the purchase of physical gold.
(The above story first appeared on LatestLY on May 23, 2021 02:13 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).