Mumbai: The Sovereign Gold Bond Scheme 2021-22 – Series II or the second tranche is available for subscription from today (May 24).
The issue opens today for subscription and will close on May 28. The issue price for the second tranche of the sovereign gold bond issue has been fixed at Rs 4,842 per gram, the Reserve Bank of India said.
The government has decided to issue the bonds in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India.
“The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period… Works out to Rs 4,842 per gram of gold,” the RBI said in a statement.
The government in consultation with the RBI 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 4,792 per gram of gold,” it said.
What is Sovereign Gold Bond Scheme?
Sovereign Gold Bond Scheme 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. The Bond is issued by Reserve Bank on behalf of Government of India.
How will the Sovereign Gold Bond Scheme be sold?
The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Who can buy Sovereign Gold Bond Scheme?
The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.