You are here: Home » PTI Stories » National » News
Business Standard

Gold bond issue price fixed at Rs 4,590/gm of gold

Business Finance

Press Trust of India  |  Mumbai 

The issue price for the next tranche of Sovereign Gold Bonds has been fixed at Rs 4,590 per gram of gold, the Reserve Bank of India said in a statement on Friday.

The Sovereign Gold Bond Scheme 2020-21-Series II will be opened for subscription from May 11, 2020 to May 15, 2020.

The issue price for Series I (April 20 to 24, 2020) was Rs 4,639 per gram of gold.

Last month, the central bank had said the government will issue Sovereign Gold Bonds (SGBs) in six tranches, beginning April 20 till September.

Sovereign Gold Bond 2020-21 is to be issued by Reserve Bank India on behalf of the Government of India.

"The nominal value of the bond based on the simple average closing price (published by the India Bullion and Jewellers Association Ltd) for gold of 999 purity of the last three business days of the week preceding the subscription out to Rs 4,590 per gram of gold," RBI said in the statement.

It further said that Government of India has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and making payment against the application through digital mode.

For such investors, the issue price of gold bond will be Rs 4,540 per gram of gold, it said.

The bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram and the tenor of the SGB 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, 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 individuals and HUFs, 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 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 domestic savings, used for purchase of gold, into financial savings.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, May 08 2020. 20:44 IST