RBI’s Sovereign Gold bond opens for subscription today

Gold eases as stronger dollar, higher yields weigh

By Administrator_India

Capital Sands

The Sovereign Gold Bond Scheme 2020-21 – Series IX will be open for subscription today, December 28 till January 1, 2021. The issue price for the latest tranche of gold bonds has been fixed at Rs 5,000, though a discount of Rs 50 per gram on the nominal value will be offered to investors applying online and making the payment against the application through digital mode, the Reserve Bank of India had said.

The value of the bond is based on the simple average closing price (published by the India Bullion and Jewellers Association Ltd) for gold of 999 purity of the last three business days of the week preceding the subscription period, that is, December 22-24.

Sovereign Gold Bond 2020-21 is issued by the RBI on behalf of the Government of India. The bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram and its tenor is eight years with exit option after fifth year to be exercised on interest payment dates.

The bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions. The minimum permissible investment will be 1 gram of gold and the maximum limit of subscription shall be 4 kg for individuals and HUFs, and 20 kg for trusts and similar entities per fiscal (April-March).

The gold bonds will be sold through banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India (SHCIL), designated post offices, and recognised stock exchanges (NSE and BSE). The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of domestic savings — used for purchase of gold — into financial savings.

As per RBI’s Annual Report 2019-20, a total of Rs 9,652.78 crore (30.98 tonnes) has been raised through the sovereign gold bond scheme (37 tranches) since its inception in November 2015.

The RBI issued 10 tranches of sovereign gold bonds for an aggregate amount of Rs 2,316.37 crore (6.13 tonnes) during 2019-20.

Related Posts
Sebi has fined 9 firms a total of Rs 1.6 billion for illegal trading
Securities and Exchange Board of India (Sebi)

On Tuesday, the capital markets regulator Sebi fined nine organizations a total of Rs 1.62 crore for manipulating Sterling Green Read more

Oil is unsteady following a near-6% drop due to economic concerns
an-ind.in/wp-admin

Early on Monday, oil prices fell as investors refocused on tight supply, however, the mood remained shaky following a 6% Read more

On strong US demand and China optimism, oil is hovering near a 13-week high
Brent oil futures

On Thursday, oil prices remained at 13-week highs, supported by strong demand in the world's largest consumer, the United States, Read more

Crude prices in Saudi Arabia have been raised, causing oil prices to rise
Oil prices

Oil prices jumped more than $2 in early trading on Monday as Saudi Arabia boosted pricing for its oil sales Read more

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x