The Government of India has announced the opening dates for Sovereign Gold Bond 2021-22 (Series VIII) subscriptions.
The series will be open for five days of subscription during the period from November 29 to December 03. The Reserve Bank of India (RBI) will issue the bonds on behalf of the Government of India.
The issue price of the bond is fixed during the subscription period 4,791 per gram, as notified by RBI.
Government in consultation with RBI has decided to allow exemption of 50 per gram from the issue price to those investors who apply online and the payment is done through digital mode.
The issue price of the Gold Bond for such investors would be 4,741 per gram of gold.
Gold bonds have a tenure of eight years with an exit option after the fifth year to be exercised on the next interest payment dates.
The investors would be compensated at a fixed rate of 2.50 per cent per annum payable half-yearly on the nominal value, while the minimum allowable investment would be 1 gram of gold.
The Sovereign Gold Bond scheme was launched in November 2015, with the aim of reducing the demand for physical gold and transferring a part of household savings – used for gold purchases – to financial savings.
December gold futures on MCX rise in prices 47,728 per 10 grams. Despite today’s rally, gold is down 1,000 per 10 grams from this month’s high as fears of a tightening US monetary policy weighed on the precious metal.
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