Fourth tranche of Sovereign Gold Bond Scheme opens for subscription

• Follow

The fourth tranche of Sovereign Gold Bond Scheme 2021-22 is now open for subscription for five days from July 12 – 16, 2021. The issue price for the scheme has been fixed at Rs 4,807 per gram of gold.

As per RBI’s statement, the nominal value of the bond works out to Rs 4,807 per gram of gold. The investors who are applying online and making payment against the application through digital mode will be given a discount of Rs 50 per gram, by the government. “For such investors, the issue price of Gold Bond will be Rs 4,757 per gram of gold,” the RBI said.

The government had announced it will issue the Sovereign Gold Bond (SGB) in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India.

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 Rs 25,702 crore has been raised through the SGB Scheme till end-March 2021 since its inception. During 2020-21, the Reserve Bank had issued 12 tranches of SGB for an aggregate amount of Rs 16,049 crore (32.35 tonnes).

SGB Scheme

In November 2015, the scheme was launched with an objective to reduce the demand for physical gold and shift a part of the domestic savings into financial savings.

The issue price for Series III, which was open for subscription during May 31 to June 4, 2021, was Rs 4,889/gm.

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 an exit option after the 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.