Home / Markets / Commodities /  Sovereign gold bond scheme opens Monday: Issue price, other details
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The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from October 25, has been fixed at 4,765 per gram of gold, the Ministry of Finance said on Saturday.

The Sovereign Gold Bond Scheme 2021-22 - Series VII will be open for subscription for the period October 25 to October 29, 2021.

The government, in consultation with the Reserve Bank of India (RBI), also provides a discount of 50 per gram less than the nominal value to those investors applying online and where the payment against the application is made through digital mode.

"For such investors, the issue price of Gold Bond will be 4,715 per gram of gold," the RBI said.

In terms of Government of India Notification No.4(5)-B(W&M)/2021 dated October 21, 2021,  Gold Bonds 2021-22 (Series VII) will be opened for subscription during the period October 25-29, 2021 with Settlement date November 02, 2021. 

The issue price of the Bond during the subscription period shall be 4,765 (Rupees Four thousand Seven hundred sixty five only) – per gram, as also published by RBI in their Press Release dated October 22, 2021.

Government of India in consultation with the Reserve Bank of India has decided to allow discount of `50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be 4,715 (Rupees Four thousand seven hundred fifteen only) per gram of gold.

The bonds are sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges National Stock Exchange of India Limited and BSE.

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

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 the yellow metal into financial savings.

Price of bond is 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 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 exit option after 5th year to be exercised on the next interest payment dates.

Minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities per fiscal (April-March).

The know-your-customer (KYC) norms are the same as that for purchase of physical gold.

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