Introducing today is the Sovereign Gold Bond Scheme: 5 day window for cheap gold purchases, issue price check, special discounts, and more.
From August 22 to August 26, the Sovereign Gold Bond Scheme 2022–23 Series II will be available for subscription for a five-day period. Sovereign Gold Bond Scheme 2022–23 Series II’s issue price has been set at Rs. 5,197 per gramme of gold.
The central bank released a statement in which it stated that the nominal value of the bond amounted to Rs 5,197.
In agreement with the RBI, the Indian government has decided to grant investors who apply online and pay for their applications using digital methods a discount of Rs 50 per gramme. The issuance price of a gold bond for these investors will be Rs 5,059 per gramme, according to the RBI.
The issuance price of a gold bond for these investors will be Rs 5,147 per gramme, according to the RBI. On behalf of the Center, the RBI issues the bonds.
The bond will have an eight-year term with a fifth-year departure option that can be exercised on the dates of the subsequent interest payments. One gramme of gold is the minimum investment amount.
The maximum subscription limit per fiscal year is 4 kilogramme for individuals, 4 kg for HUF, and 20 kg for trusts and other similar businesses (April-March). The same Know Your Customer (KYC) standards will apply as they do when buying gold in physical form. The sovereign gold bond programme was introduced in November 2015 with the aim of lowering the demand for physical gold and converting a portion of domestic savings—which were previously used to buy gold—into financial savings.
Sovereign Gold Bond Scheme: What Is It?
Government securities with a gold gramme par value are known as sovereign gold bonds. They serve as alternatives to holding actual gold. The issuance price for investors must be paid in cash, and the bonds must be redeemed in cash when they reach maturity. The Reserve Bank issues the Bond on behalf of the Government of India.
The Sovereign Gold Bond Scheme will be marketed in what ways?
The bonds will be sold through designated post offices, designated stock exchanges, such as the National Stock Exchange of India Limited and Bombay Stock Exchange Limited, as well as scheduled commercial banks (aside from Small Finance Banks and Payment Banks) and Stock Holding Corporation of India Limited (SHCIL).
Who is eligible to purchase Sovereign Gold Bonds?
The selling of the Bonds will only be permitted to residents, HUFs, Trusts, Universities, and Charitable Institutions.