Sovereign Gold Bonds Latest News: Your chance to buy at discount arrives! Know here price and what to do!

If you have missed the opportunity to buy Sovereign Gold Bonds (SGB) during the issue of SGBs in previous six tranches which began in April this year and ended in September, then here is your opportunity to buy now. The government has in October issued a notification on 9 October 2020 with regards to this and the seventh tranches is now available form today. See more details here! 

The 2020-21 Series VII SGB are open for subscription by the Reserve Bank of India (RBI) on behalf of the Government of India from 12-16 October 2020. The SGBs will be issued by RBI on 20 October 2020. 

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

SNo Tranche                    Subscription Date    Issuance date 

1.  2020-21 Series VIII         9-13 Nov                18 Oct 2020 

2.  2020-21 Series IX           28 Dec-1 Jan           5 Jan 2021 

3.  2020-21 Series X            11-15 Jan                19 Jan 2021 

4.  2020-21 Series XI           1-5 Feb                    9 Feb 2021 

5.  2020-21 Series XII          1-5 Mar                   9 Mar 2021    

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.