The issue price of the Sovereign Gold Bond Scheme 2021-22, which will be open for subscription for five days from May 17, has been set at ₹4,777 per gram, the Reserve Bank of India said on Friday.
In terms of Indian Government Notification No. 4 (5) -B (W&M) / 2021 of May 12, 2021, the 2021-22 Gold Sovereign Bonds (Series I) will be open for the period May 17-21, 2021 with settlement. . May 25, 2021. The issue price of the Bond during the subscription period will be ₹4777 (four thousand seven hundred and seventy-seven rupees only) – per gram, as also released by RBI in its May 14, 2021 press release.
The Government of India, in consultation with the Reserve Bank of India, has decided to allow the remittance of ₹50 (50 Rupees only) per gram of issue price to investors who apply online and payment is made digitally. For these investors, the issue price of Gold Bond will be ₹4.727 (four thousand seven hundred and twenty-seven rupees only) per gram of gold.
The Sovereign Gold Bond Scheme 2021-22 Series-I or first tranche will be open for subscription from May 17, 2021 to May 21, 2021, and the bonds will be issued on May 25. 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 recognized stock exchanges namely, National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
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 Limited for the last three 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 1 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 1 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).
Know-your-customer (KYC) standards will be the same as for purchasing physical gold.
The scheme was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the domestic savings – used for the purchase of gold – into financial savings.
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