: Gold Bond issue price fixed at Rs 5,197 per gm #finance #StockMarketNEWS #Business Mumbai: The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, which will open for subscription

Posted in: #finance #StockMarketNEWS #Business

Gold Bond issue price fixed at Rs 5,197 per gm #finance #StockMarketNEWS #Business
Mumbai: The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from Monday, has been fixed at `5,197 per gram of gold, the Reserve Bank of India said on Friday.

The Sovereign Gold Bond Scheme 2022-23 Series II will be open for subscription from August

22 – 26, 2022.

“The nominal value of the bondWorks out to `5,197,�? the central bank said in a statement.

The central government, in consultation with the Reserve Bank of India, has decided to offer a discount of `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 `5,147 per gram of gold,�? the RBI said.

The RBI issues the bonds on behalf of the Centre.

The bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges NSE and BSE.

The 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.

The price of the bond is fixed in Indian currency on the basis of a simple average 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 bonds are 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 an exit option after the 5th year to be exercised on the next interest payment dates.

The minimum permissible investment is 01 gram of gold. The maximum limit of subscription is 4 KG for individuals, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March).

The Know-your-customer norms will be the same as that for the purchase of physical gold.