Home >Markets >Commodities >Sovereign Gold Bond Scheme 2021-22 opens for subscription today. Details here

The Sovereign Gold Bond Scheme 2021-22 Series-I bond will open for subscription today. The issue price for the scheme has been fixed at 4,777 per gram. The issue will close on May 21 and the bonds will be issued on May 25.

The 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 4,727 per gram of gold.

The Ministry of Finance last week said that the central government in consultation with Reserve Bank of India has decided to issue Sovereign Gold Bonds. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021.

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 Bombay Stock Exchange Limited.

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 will be 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 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 individual, 4 kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March).

Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to the ordinary gold loan mandated by the Reserve Bank from time to time.

The sovereign gold bond will provide an assured return of 2.50% per annum payable semi-annually on the nominal value.

The date of subscription for the second tranche is (May 24-May28); for the third tranche (May 31-June 4); for the fourth tranche (July 12-July 16); for the fifth tranche ( August 9-August 13), and for the sixth tranche ( August 30-September 3).

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