Here’s all you need to know about your eligibility, how to apply for the Sovereign Gold Bond Scheme.
New Delhi: The Sovereign Gold Bond Scheme 2020-21 Series XI was launched on February 1, coinciding with FM Nirmala Sitharaman's presentation of Union Budget 2021. The issue price for Sovereign Gold Bond has been fixed at Rs 4,912 per gram of gold, the Reserve Bank of India said in a statement.
Sovereign Gold Bond Scheme 2020-21 - Series XI is open for subscription from February 01 to February 05, 2021."The nominal value of the bond...Works out to Rs 4,912," the RBI said.
The value of the bond is based on the simple average closing price published by 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 (January 27-29, 2020). The central bank further said the government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram 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 4,862 per gram of gold," the central bank said.
Here’s all you need to know about your eligibility, how to apply for the Sovereign Gold Bond Scheme.
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.
What will be the tenor of the Sovereign Gold Bond Scheme?
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.
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