Sovereign Gold Bond rate fixed at Rs 3,146 per gram
"Price of bond will be fixed in Indian rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Ltd for the last three working days of the week preceding the subscription period," it said.
The Central government will issue Sovereign Gold Bonds (SGB) 2018-19 for public subscription from October 15-19 at an issue price of Rs 3,146 per gram of gold.
SGBs are denominated in multiples of gram of gold with a minimum unit of one gram and can also be held in demat form.
"Government of India in consultation with the Reserve Bank of India, has decided to allow discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode," the Finance Ministry said in a statement.
For such investors the issue price of Gold Bond will be Rs 3,096 per gram of gold, it added.
According to another statement earlier this week, bonds would earn an interest of 2.5 per cent per annum, payable every six months on the nominal value. The bond certificates would be issued on October 23.
"Price of bond will be fixed in Indian rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Ltd for the last three working days of the week preceding the subscription period," it said.
As per the statement, the tenure of the bond will be for a period of eight years, with an exit option from the fifth, sixth and seventh year, to be exercised on the interest payment dates.
The Sovereign Gold Bonds will be issued every month from October 2018 to February 2019.
Watch Zee Business video here:
The bonds would be sold through banks, designated post offices, Stock Holding Corporation of India (SHCIL) and recognised stock exchanges -- the National Stock Exchange and the Bombay Stock Exchange.
The government launched the Sovereign Gold Bond Scheme in November 2015 as an alternative to purchasing metal gold and mobilise the idle gold held by households and institutions into productive use in the long run.
The scheme envisages to reduce the current account deficit by reducing the country`s reliance on the import of gold to meet the domestic demand.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
08:51 AM IST