Sovereign Gold Bond Scheme opens from today: Check issue price, minimum investment limit and more

India

oi-Madhuri Adnal

New
Delhi,
Aug
22:
The
issue
price
for
the
second
tranche
of
Sovereign
Gold
Bond
Scheme
(SGB)
2022-23,
which
will
open
for
subscription
from
today
and
last
for
five
days
till
August
26,
has
been
fixed
at
Rs
5,197
per
gram
of
gold,
the
Reserve
Bank
of
India
(RBI)
said.

Key
dates

The
Sovereign
Gold
Bond
Scheme
2022-23
Series
II
will
be
open
for
subscription
from
August
22
–
26,
2022.”The
nominal
value
of
the
bond…works
out
to
Rs
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
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
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.

AP
man
donates
Rs
36.98
lakh
gold
crown
to
Shirdi
Saibaba
Temple

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.
They
have
a
maturity
period
of
8
years
with
an
exit
options
available
at
the
end
of
5th
year
to
be
exercised
on
the
interest
payment
date.

Minimum
and
maximum
permissible
investment
limit

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
(KYC)
norms
will
be
the
same
as
that
for
the
purchase
of
physical
gold.

What
is
Sovereign
Gold
Bond
Scheme?

Sovereign
gold
bonds
are
cost
effective
when
compared
to
possessing
physical
gold.
It
is
ideal
to
possess
gold
in
the
form
of
sovereign
bonds
because
when
you
purchase
and
sell
jewellery,
you
incur
the
loss
of
15-20
towards
making
charges
every
time
you
change
gold
form.
You
may
possess
sovereign
gold
bonds
(SGBs)
in
the
form
of
physical
certificates
or
in
your
demat
account.
You
can
also
escape
the
worries
of
maintenance
of
gold
and
loss
in
translation
in
the
form
of
SGBs,
according
to
Motilal
Oswal.

Who
can
buy
Sovereign
Gold
Bond
Scheme?

The
Bonds
will
be
restricted
for
sale
to
resident
individuals,
HUFs,
Trusts,
Universities
and
Charitable
Institutions.