Sovereign Gold Bonds To Open For Subscription Tomorrow: All You Need To Know

Sovereign Gold Bond: The 12th and last series of the government's Sovereign Gold Bond (SGB) scheme 2020-21 will open for subscription on Monday, March 1, for a period of five days till Friday (March 5). As part of the gold bond scheme, the Reserve Bank of India (RBI) issues interest-paying bonds linked to the market price of the yellow metal. The gold bonds were issued in series of six tranches, starting from October 2020. For the 12th installment of the gold bond scheme, an issue price of Rs 4,662 per unit, equivalent to the value of one gram of gold, is applicable, according to the RBI . (Also Read: Budget 2021: Section 47 Of I-T Act Must Be Amended With Respect To Gold Bonds Scheme )

Here are some key details about the government-run Sovereign Gold Bond scheme: 

Issue Price

Each gold bond (equivalent to one gram of gold) is priced at Rs 4,662 under the 12th tranche, according to the central bank The rate is decided on the basis of the spot prices provided by the Mumbai-based India Bullion and Jewellers Association (IBJA).  
 

Important Dates

The 12th tranche of the gold bond scheme will open for subscription on Monday, March 1, and will be available for investing till Friday, March 5, 2021

Discount

According to the RBI, a discount of Rs 50 per unit is applicable for all those investing in the gold bonds online, and the payment against the application is made through any of the digital modes. For such investors, the issue price of the gold price will be Rs 4,612 per gram of gold. (Also Read: Here Is How Sovereign Gold Bond Price Is Calculated)

Eligible Investors

The government's gold bond scheme is open to resident individuals, Hindu Undivided Families (HUFs), trusts, charitable institutions, and universities. According to the RBI, the individual investors with subsequent change in residential status from resident to non-resident can continue to hold SGB till the early redemption or maturity.

How To Invest

The sovereign gold bonds are sold through commercial banks, the Stock Holding Corporation, designated post offices, as well as the stock exchanges BSE and NSE. The bonds are held in the RBI books or in a demat form. The minimum permissible investment will be one gram of gold.