Sovereign Gold Bond Scheme 2021: 1st day of subscription, Know everything about Scheme
By Sanjay Maurya
- Today is the first day of subscription for the Sovereign Gold Bond Scheme 2021-22 Series-I bond.
- The bonds will be released on May 25 after the issue closes on May 21.
- The Reserve Bank of India has agreed to offer a discount of INR 50 per gram off on the issue price to investors who apply online and pay in digital currency.
1st day of Sovereign Gold Bond Scheme subscription 2021, Know everything about Scheme
Today is the first day of subscription for the Sovereign Gold Bond Scheme 2021-22 Series-I bond. The scheme’s issue price has been set at INR 4,777 per gram. The bonds will be released on May 25 after the issue closes on May 21.
The Govt. of India in coordination with the RBI, has agreed to offer a discount of INR 50 per gram on the issue price to investors who apply online and pay in digital currency. The issue price of a Gold Bond for such buyers would be INR 4,727 per gram.
The bonds would be sold by banks (except Small Finance Banks and Payment Banks), SHCIL, designated post offices, and recognized stock exchanges such as the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.
About SGB tenor
The bond will have an eight-year tenor, with a five-year withdrawal clause that can be exercised on the next interest payment dates.
SGB Minimum & Maximum amount
One gram of gold is the minimum quantity that can be spent. Individuals have a 4 kg maximum subscription limit, HUFs have a 4 kg maximum subscription limit, and trusts and related organizations have a 20 kg maximum subscription limit per fiscal year (April-March).
5 Important Date of subscription
- May 24-May28 for the Second tranche
- May 31-June 4 for the third tranche
- July 12-July 16 for the fourth tranche
- August 9-August 13 for the fifth tranche
- August 30-September 3 for the sixth tranche
Last week, the Ministry of Finance announced that the central government had agreed to issue sovereign gold bonds after consulting with the Reserve Bank of India. From May to September 2021, six tranches of Sovereign Gold Bonds will be issued.
Bonds are a type of security that can be used to secure a loan. The loan-to-value (LTV) ratio must be set at the same level as the regular gold loan mandated by the Reserve Bank. On the nominal value of the sovereign gold bond, a guaranteed return of 2.50 percent per year would be paid semi-annually.
