Sovereign Gold Bonds Latest News: Hurry up subscription closes 24th April

Those who have still not purchased Sovereign Gold Bonds should hurry-up as tomorrow is the last date for subscription to 2020-21 Series I SGB. The next opportunity will only be next month when 2020-21 Series II SGB are open for subscription between 11-15 May. The 2020-21 Series I SGB were open for subscription by the Reserve Bank of India (RBI) on behalf of the Government of India from 20 April.

The Series I SGB will be issued on 28 April.

Here is the List of SGB issuance dates for remaining 5 tranches:

SNo Tranche               Subscription Date  Issuance date
1.  2020-21 Series II     11-15 May                19 May
2.  2020-21 Series III     8-12 Jun                  16 Jun
3.  2020-21 Series IV    6-10 Jul                    14 Jul
4.  2020-21 Series V     3-7 Aug                    11 Aug
5.  2020-21 Series VI    31 Aug-4 Sep            8 Sep    

SGBs are government securities denominated in grams of gold and 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. The Bond is issued by the Reserve Bank on behalf of Government of India.

The payment for the Bonds will be through cash payment (up to a maximum of Rs 20,000) or demand draft or cheque or electronic banking. The issue price of the Gold Bonds will be Rs 50 per gram less for those who subscribe online and pay through digital mode.

The Bonds will be 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 interest payment dates.

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SGB are restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions. The minimum permissible investment is 1 gram of gold while the maximum limit for subscription is 4 kg for individual, 4 kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time.