Sovereign Gold Bond Scheme to open from Monday: Issue Price, Other Details

Under the series, the bonds were issued in six tranches from May 2021 to September 2021.

The subscription period for the 2021-22 Series-VII will be from October 25 to October 29 and the bonds will be issued on November 2, the Finance Ministry said in a statement.

Bonds sold through banks (except small finance banks and payments banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices and recognized stock exchanges (National Stock Exchange of India) Will go and Bombay Stock Exchange).

The Reserve Bank of India will issue the bonds on behalf of the Government of India.

The bond will be priced in Indian Rupees on the basis of simple average of closing price of 999 purity gold published by India Bullion and Jewelers Association Limited for the last three working days of the week preceding the subscription period. The issue price of the Gold Bond will be ₹50 per gram less for those who subscribe online and pay through digital mode.

The bond will be for a tenor of eight years and the exit option after the fifth year will be exercised on the next interest payment dates.

The minimum allowable investment would be 1 gram of gold, the ministry said, adding that investors would be paid a fixed rate of 2.50 per cent per annum on the nominal value.

The maximum limit of membership per financial year (April-March) will be 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities.

Know Your Customer (KYC) norms will be the same as for physical gold purchases.

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.