Sovereign Gold Bond Scheme 2021 Series VI subscription starts from TODAY - Check PRICE, BENEFITS, DISCOUNTS and other DETAILS investors MUST KNOW

ZeeBiz WebTeam | Aug 30, 2021, 03:28 PM IST

Sovereign Gold Bond Scheme (SGB): The Sovereign Gold Bond Scheme 2021-22 - Series VI is open from subscription from today, August 30, 2021 and the last date for subscription is September 3, 2021. The interested individuals must note that the State Bank of India (SBI) customers will get a special discount on the SGBs for applying online. There are also certain benefits that the investors can get from the SGBs.

The individuals interested to invest in SGBs must be aware of several details. They are as follows:

 

 

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What is SGBs?

What is SGBs?

Sovereign Gold Bond Scheme was launched by the government in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by the Reserve Bank of India (RBI) in consultation with the government of India. The interested customers must note that the SGBs 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. Source: PTI

 

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Price

Price

The nominal value of the bond based on the simple average closing price, 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, that is, August 25, August 26 and August 27, 2021 works out to Rs 4,732 per gram of gold. Source: PTI

 

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6 Golden Reasons for investing

6 Golden Reasons for investing

The SBI has recently tweeted about the reasons behind investing in SGBs. The tweet said, "Planning to invest in Gold? Here are 6 golden reasons to invest in Sovereign Gold Bonds. SBI customers can invest in these bonds on http://onlinesbi.com under e-services. Know more: bit.ly/2O8ESdv." The six golden reasons for investing in SGBs are as follows:- the investment assures returns of 2.50 per cent per annum payable half-yearly, it is secured and there are no storage hassles like physical gold, the liquidity is tradable on exchanges, there is no GST and making charges unlike in physical gold, it can be also used as collateral for loans and there is no Capital Gains Tax on redemption. Source: SBI Twitter

 

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Discount

Discount

The SBI customers must note that there will also be a special discount of Rs 50 per gram on online applications. SBI recently tweeted from their official Twitter handle and informed its customers about the scheme. It also has to be noted that the RBI in consultation with the government 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 4,682. Source: PTI

 

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Rate of interest

Rate of interest

The individuals interested in investment in SGBs must note that the bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal. Source: Reuters

 

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Eligibility for investing in SGB?

Eligibility for investing in SGB?

The people residing in India who are defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. The eligible investors include individuals, HUFs, trusts, universities and charitable institutions. The individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity. Source: Reuters