Sovereign gold bond issuance price: The Reserve Bank said in a statement on Friday that the next tranche of sovereign gold bonds has been priced at Rs 6,263 per gram and will be open for subscription for five days from Monday.
The Reserve Bank of India issues bonds on behalf of the Government of India.
“The nominal value of the bond… is calculated at Rs 6,263 per gram of gold,” the central bank said.
Sovereign Gold Bond February 2024
Sovereign gold bond opening dates: Sovereign Gold Bond Scheme 2023-24 – The fourth round will be open for subscription from February 12 to 16, 2024.
How to buy sovereign gold bonds?
SGB will be sold through designated commercial banks (except small finance banks, payment banks and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, National Stock Exchange of India. Ltd. and Bombay Stock Exchange Ltd.
Reserve Bank of India Sovereign Gold Bond Discount
The Indian government, in consultation with the Reserve Bank, has decided to offer a discount of Rs 50 per gram off the face value to investors who apply online and pay through digital mode.
The Reserve Bank of India said that for such investors, the gold bond issue price will be Rs 6,213.
Know Your Customer (KYC) norms will be the same as those for purchasing physical gold.
How are sovereign gold bond prices calculated?
The price of SGB is fixed in Indian rupees and is based on the simple average closing price of 999 fine gold published by the Indian Bullion and Jewelers Association Limited (IBJA) on the last three working days of the week preceding the subscription period.
sovereign gold bond interest rate
Investors are compensated at a fixed interest rate of 2.50% per annum, with semiannual payments of par value.
Maximum limit under the Sovereign Gold Bond Scheme
The maximum subscription limit per financial year is 4 kg for individuals, 4 kg for Hungarian forints, and 20 kg for trusts and similar entities.
Sovereign gold bond maturity
The term of SGB is eight years, and the option of early redemption can be exercised on the interest payment date after the fifth year.
The bond can be used as collateral for a loan.
Purpose of the Sovereign Gold Bond Program
The Sovereign Gold Bond Scheme was launched in November 2015 to reduce demand for physical gold and convert some of the domestic savings used to purchase gold into financial savings.
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