The issue price for the Sovereign Gold Bond has been fixed at Rs 4,852 per gram of gold, the Reserve Bank of India said in a statement on Friday. The Sovereign Gold Bond Scheme 2020-21-Series IV will be opened for subscription for the period between July 6 and July 10. The central bank in April had announced that the government will issue Sovereign Gold Bonds (SGBs) in six tranches beginning April 20 till September. Sovereign Gold Bond 2020-21 will be issued by the Reserve Bank of India (RBI) on behalf of the Government of India.

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"The nominal value of the bond based on the simple average closing price (published by the India Bullion and Jewellers Association) for gold of 999 purity of the last three working days of the week preceding the subscription period...Works out to Rs 4,852 per gram of gold," the RBI said.

It further said the government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

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"For such investors, the issue price of gold bond will be Rs 4,802 per gram of gold," the central bank said.

The issue price for the bonds, which were open for subscription from June 8-12, was Rs 4,677 per gram of gold.

The bonds are denominated in multiples of grams of gold with a basic unit of 1 gram, and the tenor of the SGB will be eight years with exit option after fifth year to be exercised on the interest payment dates.

The bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.

The minimum permissible investment will be 1 gram of gold and the maximum limit of subscription shall be 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).

The gold bond will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India, designated post offices, and recognised stock exchanges (NSE and BSE).

The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings.