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Business News/ Economy / RBI to issue next tranche of Sovereign Gold Bonds from 19-23 December. Details here
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RBI to issue next tranche of Sovereign Gold Bonds from 19-23 December. Details here

The date of the issue of the SGB has been finalised as 27 December, 2022, on behalf of the government of India.

Apart from this, the RBI informed that it will also issue the next tranche of SGBs – 2022-23 Series IV – from 6-10 March, 2023. (MINT_PRINT)Premium
Apart from this, the RBI informed that it will also issue the next tranche of SGBs – 2022-23 Series IV – from 6-10 March, 2023. (MINT_PRINT)

The Reserve Bank of India on 15 announced to issue next tranche of Sovereign Gold Bonds' 2022-23 Series III from 19-23 December, 2022.

The date of the issue of the SGB has been finalised as 27 December, 2022 on behalf of the government of India.

As per the new circular, the SGBs will be restricted for sale to resident individuals, HUFs, trusts, universities and charitable institutions and will be denominated in multiples of gram(s) of gold with a basic unit of one gram.

The minimum permissible investment will be one gram of gold and the maximum limit of subscription shall be 4 Kg for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March).

ALSO READ: Gold ETFs or sovereign gold bonds, what are the best ways to invest in gold?

Apart from this, the RBI informed that it will also issue the next tranche of SGBs – 2022-23 Series IV – from 6-10 March, 2023. The date of issuance of the SGBs would be 14 March, 2023.

Issue price:

Briefing on the issue price, the RBI said, "Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period."

"The issue price of the SGBs will be less by 50 per gram for the investors who subscribe online and pay through digital mode," it added.

Payment option:

Payment for the SGBs will be through cash payment (upto a maximum of 20,000) or demand draft or cheque or electronic banking.

Sales channel:

The RBI informed that SGBs will be sold through scheduled commercial banks (except SFB, payment banks and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices and recognised stock exchanges viz., NSE of India Limited and BSE Limited, either directly or through agents.

Interest rate:

The central bank said the investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.

Other information:

The RBI in its circular said that SGBs can be used as collateral for loans, will be eligible for trading and the KYC norms will be the same as that for purchase of physical gold. Also, the interest on SGBs shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961).

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ABOUT THE AUTHOR
Saurav Mukherjee
A business media enthusiast...believe to listen more, than just blabbering like others.
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Published: 15 Dec 2022, 11:08 PM IST
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