Sovereign Gold Bonds Latest News: Series V - Price Rs 4,790 per 10 gram – Buy online at DISCOUNT – here is how to buy
Price of Series V SGB will be Rs 4,790 per gram of fold for offline investors. For online buyers, there is a discount of Rs 50 per 10 gram and the SGB is available at Rs 4,740 per 10 gram
A big opportunity for investors to buy gold. The Government of India on 12 May 2021 announced the Sovereign Gold Bond (SGB) Scheme 2021-22, Series I, II, III, IV, V and VI. Under the scheme there will be a distinct series (starting from Series I) for every tranche. While, four tranches of SGB have already been sold. The Series V 2021-22 opens on Monday. The SGB will be available for subscription till 13 August 2021. The issuance will be done on 17 August 2021.
The Sovereign Gold Bonds are issued by the Reserve Bank of India (RBI) on behalf of the government.
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The price of Series V SGB will be Rs 4,790 per gram of fold for offline investors. For online buyers, there is a discount of Rs 50 per gram and the SGB is available at Rs 4,740 per gram.
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.
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.
Benefits of SGBs - Zee Business Expert Jitendra Solanki gives useful insights:
Solanki said that SGBs is a surely a good investment option for all those who are willing to invest in Gold. He said that one gets an additional rate of interest above what capital appreciation one will get from gold.
This instrument has a benefit of capital gains tax exemption if invested for 8 years. While the investors have an option to exit after five years, they will not have the benefit of tax exemption in case if the decide to exit in 5 years. An 8-year horizon should be taken while investing in SGBs. He says a strict NO for premature REDEMPTION.
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