Sovereign Gold Bond new issue opens today: The Sovereign Gold Bond (SGB) scheme’s new tranche opened from Monday (August 22) for subscription. The scheme will remain open for subscription for the next 5 days, as per the Reserve Bank of India (RBI) notification issued earlier. The central bank has set a price of Rs 5,197 per gram of gold with respect to SGB scheme.
“Don’t miss out on this golden opportunity! SOVEREIGN GOLD BONDS SCHEME 2022-23 SERIES – II opens from 22 Aug to 26 August,” State Bank of India (SBI), the country’s largest lender, said in a Tweet.
Don’t miss out on this golden opportunity! SOVEREIGN GOLD BONDS SCHEME 2022-23 SERIES – II opens from 22 Aug to 26 Aug.
Know more: https://t.co/toePwigMVj
#SovereignGoldBond #AzadiKaAmritMahotsavWithSBI #SBI pic.twitter.com/t0HLSV2eqg
— State Bank of India (@TheOfficialSBI) August 20, 2022
Sovereign Gold Bond Below: 10 things to know about SGB Scheme
* The RBI issues the bonds on behalf of the Central government.
* The bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges — NSE and BSE.
* The bonds are denominated in multiples of gram (s) of gold with a basic unit of 1 gram.
* The tenor of the bond will be for a period of 8 years with an exit option after the 5th year to be exercised on the next interest payment dates.
* The price of the bond is fixed in Indian currency on the basis of a simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.
* 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 will be the same as that for the purchase of physical gold.
* The central government, in consultation with the Reserve Bank of India, has decided to offer 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.
* The 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 the purchase of gold — into financial savings.
With PTI Inputs