Sovereign Gold Bonds Latest News: Subscription for seventh tranche opens on Monday; apply online to avail discount of Rs 50 per gram

The seventh tranche of Sovereign Gold Bonds (SGB) will open for subscription on Monday, 25 October 2021. The last date for subscription of SGBs is 29 October 2021. 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 (October 20, October 21 and October 22, 2021) was Rs 4,761 per gram of gold.

A discount of Rs 50 per gram will be offered to investors applying online. The payment against the application is ought to be made through digital mode. For such investors, the issue price of Gold Bond will be Rs 4,711 per gram.

See Zee Business Live TV Streaming Below:

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.

SGB are restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions. 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.

The minimum permissible investment will be 1 gram of gold while the maximum limit is of subscription shall be 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.

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