Sovereign Gold Bond (SGB) Series VI closes for subscription TOMORROW; check PRICE, DISCOUNT, BENEFITS and everything an investor MUST KNOW

Sovereign Gold Bond (SGB) Series VI: The Sovereign Gold Bond Scheme 2021-22 - Series VI closes for subscription tomorrow, September 3, 2021. The scheme opened from August 30, 2021. The investors who will be applying online will get a special discount of Rs 50 per gram. Now, the interested investors must know certain things about SGB 2021-22 Series VI.

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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.

Price: The nominal value of the bond 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, that is, August 25, August 26 and August 27, 2021, works out to Rs 4,732 per gram of gold.

Golden reasons to invest: The SBI has tweeted from its official Twitter handle regarding the golden reasons for investing in SGB. The tweet said, "Planning to invest in Gold? Here are 6 golden reasons to invest in Sovereign Gold Bonds. SBI customers can invest in these bonds on http://onlinesbi.com under e-services. Know more: bit.ly/2O8ESdv."

Planning to invest in Gold?
Here are 6 golden reasons to invest in Sovereign Gold Bonds.
SBI customers can invest in these bonds on https://t.co/YMhpMwjHKp under e-services.

Know more: https://t.co/H4BpchASeA#Gold #GoldBond #SGBWithSBI #SovereignGoldBonds pic.twitter.com/RWY8QStBWU

— State Bank of India (@TheOfficialSBI) August 31, 2021

The six golden reasons for investing in SGBs are as follows:-

1) The investment assures returns of 2.50 per cent per annum payable half-yearly

2) It is secured and there are no storage hassles like physical gold

3) The liquidity is tradable on exchanges

4) There is no GST and making charges unlike in physical gold

5) It can be also used as collateral for loans

6) There is no Capital Gains Tax on redemption.

Discount: It also has to be noted that the RBI in consultation with the government 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 4,682.

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.