Sovereign Gold Bond Priced at Rs 5000; get big discount today

ZeeBiz WebTeam | Dec 28, 2020, 12:01 PM IST

Sovereign Gold Bond, priced at Rs 5000, is available at a big discount from today through online mode. The Sovereign Gold Bond is issued by Reserve Bank on behalf of Government of India. They are substitutes for holding physical gold. The Sovereign Gold Bond Scheme 2020-21 series IX opened for subscription on Monday (December 28, 2020), and it will close on Friday (January 01, 2021). Pic Credit: Reuters

1/8

How much gold can you buy under Sovereign Gold Bond Scheme?

How much gold can you  buy under Sovereign Gold Bond Scheme?

Sovereign Gold Bond Scheme Limit: Minimum permissible investment will be 1 gram of gold. The maximum limit of subscribed shall be 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. A self-declaration to this effect will be obtained. Pic Credit: Reuters

2/8

How will Sovereign Gold Bond price be fixed?

How will Sovereign Gold Bond price be fixed?

Sovereign Gold Bond price: The issue price for the Bond will be fixed on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.

The nominal Sovereign Gold Bond price based on the simple average closing rate [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. December 22 - 24, 2020 works out to Rs 5,000 per gram of gold. Pic Credit: PTI

3/8

Sovereign Gold Bond issue price discount

Sovereign Gold Bond  issue price discount

Sovereign Gold Bond discount: The issue price of the Sovereign Gold Bond will be Rs 50 per gram less for those who subscribe online and pay through digital mode.

4/8

Sovereign Gold Bond Tenor

Sovereign Gold Bond Tenor

Sovereign Gold Bond Tenor: The tenor of Sovereign Gold Bond will be for a period of 8 years with exit option after 5th year to be exercised on the interest payment dates. Pic Credit: Reuters

5/8

Where can Sovereign Gold Bond be purchased?

Where can Sovereign Gold Bond be purchased?

Buying Sovereign Gold Bond: Sovereign Gold Bond 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. Pic Credit: Reuters 

6/8

Are you eligible to buy Sovereign Gold Bond?

Are you eligible to buy Sovereign Gold Bond?

Sovereign Gold Bond eligibility: The Sovereign Gold Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions. Pic Credit: Reuters

7/8

How many Sovereign Gold Bonds tranches has RBI issued?

How many Sovereign Gold Bonds tranches has RBI issued?

Sovereign Gold Bonds tranches: The RBI issued 10 tranches of Sovereign Gold Bonds (SGBs) for an aggregate amount of Rs 2,316.37 crore (6.13 tonnes) during 2019-20. Pic Credit: Reuters

8/8

What is Sovereign Gold Bond Scheme?

What is Sovereign Gold Bond Scheme?

About Sovereign Gold Bond Scheme: The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings, used for the purchase of gold, into financial savings. Sovereign Gold Bond represents government securities denominated in grams of gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. Pic Credit: Reuters