Sovereign gold bond scheme subscription opens today. Should you subscribe?
The Sovereign Gold Bond Scheme 2022-23 – Series IV will open for subscription today, 5 March. The gold bond scheme will remain open for subscription for five days from Monday. The issue price has been fixed at ₹5,611 per gram of gold. “The nominal value of the bond…works out to ₹5,611 per gram of gold, the Reserve Bank of India (RBI) said.
The RBI issues the Sovereign Gold Bond (SGB) on behalf of the government of India.
SGB: Discount for investors applying online
Government of India, in consultation with the Reserve Bank of India, has decided to 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.
“For such investors, the issue price of gold bond will be ₹5,561 (Rupees Five thousand five hundred and sixty one only) per gram of gold,” RBI said.
From where can investors buy SGB?.
The bonds will be sold through banks Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges — National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
SGB lock-in period
The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.
The bonds are denominated in multiples of gram (s) of gold with a basic unit of 1 gram. The tenor of the bond will be for a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates.
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