The second tranche of the sovereign gold bond scheme 2021-22 will be open for subscription from Monday. The window will remain open till 28. The government has decided to issue the bonds in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India.
The Reserve Bank of India (RBI) has fixed the issue price for the second tranche of the sovereign gold bond scheme at ₹4,842 per gram.
“The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period… works out to ₹4,842 per gram of gold,” the RBI said in a statement on Friday.
The government will 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.
The bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and National Stock Exchange and the Bombay Stock Exchange (BSE).
These gold bonds can be bought by resident individuals, Hindu Undivided Families (HUFs), trusts, universities as well as charitable institutions but with a limit on investment.
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).
The tenor of the bonds is for a period of 8 years with an exit option after the fifth year to be exercised on the next interest payment dates.
The sovereign gold bond scheme was launched by the government in November 2015 to reduce the demand for physical gold and shift a part of the domestic savings – used for the purchase of gold – into financial savings.