Sovereign Gold Bond (SGB) Scheme: Subscription for series X opens today; see price, discount, interest rate and more

Sovereign Gold Bond (SGB) Scheme: The Sovereign Gold Bond (SGB) Scheme 2021-22 - Series X will be open for subscription for the period from today, February 28, 2022.

It will remain open for subscription till March 4, 2022, as per a release from the Reserve Bank of India (RBI). The RBI has fixed the price of the SGB series 10 at Rs 5,109. per gram. 

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Now, there are certain important pointers that the interested investors must know about SGB  scheme - series X. These are as follows: 

What is Sovereign Gold Bond?
Sovereign Gold Bond Scheme was launched by the government in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by the Reserve Bank of India (RBI) in consultation with the government of India. The interested customers must note that the SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.

SGB series X: Price
As per RBI, the nominal value of the bond is based on the simple average closing price, published by the India Bullion and Jewellers Association Ltd (IBJA), for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. February 23, February 24, and February 25, 2022 works out to Rs 5,109, per gram of gold.

SGB series X: Discount
The government of India, in consultation with the Reserve Bank of India, 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. For such investors, the issue price of Gold Bond will be Rs 5,059, per gram of gold.

SGB series X: Interest rate
The individuals interested in investment in SGBs must note that the bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.

SGB series X: Eligibility
The people residing in India who are defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. The eligible investors include individuals, HUFs, trusts, universities and charitable institutions. The individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.