All Rights Reserved Finance News 2020.
Next tranche of gold bond to open for subscription on Aug 31, issue price at Rs 5,117/gm
MUMBAI: The issue price for the sixth tranche of the Sovereign Gold Bond Scheme has been mounted at Rs 5,117 per gram, the RBI stated in a press release on Friday.
The Sovereign Gold Bond Scheme 2020-21 collection VI will open for subscription on August 31, 2020 and shut on September 4, 2020.
The issue price for the bonds (collection V), which have been open for subscription from August 3 to August 7, was Rs 5,334 per gram of gold.
“The nominal worth of the bond based mostly on the straightforward common closing price for gold of 999 purity of the final three enterprise days of the week previous the subscription interval, i.e. August 26 – August 28, 2020, works out to Rs 5,117 per gram of gold,” the Reserve Financial institution stated.
It additional stated the federal government, in session with the RBI, has determined to supply a reduction of Rs 50 per gram lower than the nominal worth to these traders making use of on-line and the fee towards the applying is made via digital mode.
“For such traders, the issue price of gold bond will likely be Rs 5,067 per gram of gold,” the central financial institution stated.
Sovereign Gold Bond (SGB) 2020-21 is issued by the Reserve Financial institution India on behalf of the Authorities of India.
The bonds are denominated in multiples of gram(s) of gold with a primary unit of 1 gram and the tenor of the SGB will likely be eight years with exit choice after fifth 12 months to be exercised on the curiosity fee dates.
The bonds are restricted for sale to resident people, Hindu Undivided Households (HUFs), Trusts, Universities and Charitable Establishments.
The minimal permissible funding will likely be 1 gram of gold and the utmost restrict of subscription shall be Four kg for particular person, Four kg for HUF and 20 kg for trusts and comparable entities per fiscal (April-March).
The gold bond will likely be offered via banks (besides small finance banks and fee banks), Inventory Holding Company of India (SHCIL), designated publish places of work, and recognised inventory exchanges (NSE and BSE).
The sovereign gold bond scheme was launched in November 2015 with an goal to scale back the demand for bodily gold and shift a component of the home financial savings, used for the acquisition of gold, into monetary financial savings.
As per the RBI Annual Report 2019-20, a complete of Rs 9,652.78 crore (30.98 tonnes) has been raised via the Sovereign Gold Bonds Scheme (37 tranches) since its inception in November 2015.
The RBI issued 10 tranches of Sovereign Gold Bonds (SGBs) for an mixture quantity of Rs 2,316.37 crore (6.13 tonnes) throughout 2019-20.