New Delhi: The 2021-22 Sovereign Gold Bond Programme – Series X or Tenth Tranche is open for subscription from today (Monday 28 February).
Sovereign Gold Bond Scheme 2021-22 – Series-X will be open for subscription over five days from February 28 to March 4. The issue price of the Sovereign Gold Bond Scheme 2021-22 Series-IX is set at Rs 5,109 per gram of gold.
“The face value of the bond…is Rs 5,109,” the central bank said in a statement. The Indian government, after consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram to investors who apply online and pay the application fee digitally. “For such investors, the issue price of gold bonds will be Rs 5,059 per gram of gold,” the RBI said.
The bond has a term of eight years, with an exit option after the fifth year, which will be exercised on the next interest payment date. The minimum allowed investment is 1 gram of gold.
Each financial year (April to March), the maximum subscription limit is 4kg for individuals, 4kg for HUF and 20kg for trusts and similar entities.
Know Your Customer (KYC) specifications are the same as when buying physical gold. The government gold bond program, launched in November 2015, aims to reduce demand for physical gold and reallocate some of the domestic savings used to buy gold into financial savings.
“This is more than the market expected,” Reuters quoted Bob Haberkorn, chief market strategist at RJO Futures, as saying. “If Russia does occupy Kyiv and the international community reacts positively, the price of gold will soon soar above $2,000,” Haberkorn said. Berkorn added.
What is the Government Gold Bond Program?
The sovereign gold bond program is a government bond denominated in grams of gold. They are an alternative to holding physical gold. Investors must pay the issue price in cash, and the notes will be redeemed in cash at maturity. The bond is issued by the Reserve Bank on behalf of the Indian government.
How will the sovereign gold bond program be sold?
Bonds will be sold limited through regular commercial banks (excluding Small Finance Banks and Payments Banks), Joint Stock Corporations of India (SHCIL), certain post offices and recognised stock exchanges (i.e. National Stock Exchange of India Limited and Bombay Stock Exchange). of.
Who can buy the sovereign gold bond program?
Bond sales to resident individuals, HUFs, trusts, universities, and nonprofits are restricted.
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