PremiumListen to this article |
The Reserve Bank of India (RBI) on Friday announced the issue price of ₹5,091 per gram of gold in the first tranche of the Sovereign Gold Bond Scheme 2022-23 which is set to open on June 20 for the subscription. The first tranche will be available for subscription till June 24, 2022.
In a statement today, RBI said, "The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. June 15, June 16 and June 17, 2022 works out to ₹5,091 per gram of gold."
However, in consultation with RBI, the government has decided to offer a discount of ₹50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
RBI will be issuing series - 1 of Sovereign Gold Bond Scheme 2022-23 on behalf of the government. The SGBs will be restricted from sale to resident individuals, HUFs, Trusts, Universities, and Charitable Institutions.
After the bidding period, RBI has set the issuance date of the bonds in the first tranche on June 28.
The investors will be issued a Certificate of Holding for the same. The SGBs will be eligible for conversion into Demat form.
Notably, The SGBs 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.
Also, the SGBs shall be eligible for trading. Furthermore, RBI stated that commission for distribution of the SGB shall be paid at the rate of one percent of the total subscription received by the receiving offices, and receiving offices shall share at least 50% of the commission so received with the agents or sub-agents for the business procured through them.
