RBI prices gold sovereign bonds at Rs 4,852 per gram, issue opens July 6

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The issue price of the sovereign gold bond was set at Rs 4,852 per gram of gold, the Reserve Bank of India said in a statement on Friday.

The Sovereign Gold Bond Scheme 2020-21-Series IV will be open for subscription for the period July 6-10.

The central bank announced in April that the government would issue sovereign gold bonds (SGBs) in six tranches from April 20 to September.

The 2020-21 Sovereign Gold Bond will be issued by the Reserve Bank of India (RBI) on behalf of the Government of India.

“The face value of the bond based on the simple average closing price (published by the India Bullion and Jewelers Association) for gold of purity 999 for the last three business days of the week preceding the subscription period … amounts to Rs 4,852 per gram of gold, “said the RBI.

He further stated that the government, in consultation with the RBI, has decided to offer a rebate of Rs 50 per gram less than face value to investors who apply online and that payment against demand is made through the digital mode.

“For these investors, the issue price of gold bonds will be 4,802 rupees per gram of gold,” the central bank said.

The issue price of the bonds, which were open for subscription from June 8 to 12, was Rs 4,677 per gram of gold.

The bonds are denominated in multiples of grams of gold with a base unit of 1 gram, and the term of the SGB will be eight years with option to exit after the fifth year to exercise on the interest payment dates.

Bonds are reserved for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.

The minimum authorized investment will be 1 gram of gold and the maximum subscription limit will be 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities per fiscal year (April-March).

The Gold Bond will be sold through Banks (except Small Financial Banks and Payment Banks), Stock Holding Corporation of India, Designated Post Offices and Recognized Stock Exchanges (NSE and BSE ).

The sovereign gold bond program was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the national savings – used for the purchase of gold – to financial savings. .

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