Domestic Bonds

Issue price of gold bonds set at Rs 4,786 / g; The subscription opens on Monday


Mumbai, January 7 (PTI) The issue price for the next tranche of the Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from Monday, has been set at Rs 4,786 per gram, announced Friday the RBI.

The Sovereign Gold Bond Scheme 2021-22 – Series IX will be open for subscription for the period from January 10 to 14, 2022.

The face value of the bond “stands at Rs 4,786 per gram of gold,” the central bank said in a statement.

The Indian government, in consultation with the Reserve Bank, has decided to offer a discount of Rs 50 per gram less than face value to investors who apply online and payment against demand is done digitally.

“For these investors, the issue price of the gold bonds will be Rs 4,736 per gram of gold,” the RBI said.

The issue price of Series VIII, which was open for subscription from November 29 to December 3, 2021, was Rs 4,791 per gram of gold.

The RBI issues the bonds on behalf of the Indian government.

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

The program was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the national savings – used for the purchase of gold – into financial savings.

The bond price is set in Indian rupees based on the simple average of the closing prices of 999 purity gold, published by the India Bullion and Jewelers Association for the last three working days of the week before the subscription period.

Bonds are denominated in multiples of gram (s) of gold with a base unit of one gram. The term of the bond will be 8 years with an exit option after the 5th year to be exercised at the next interest payment dates.

The minimum authorized investment is one gram of gold. The maximum subscription limit is 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities by fiscal (April-March).

The Know Your Customer (KYC) standards will be the same as for the purchase of physical gold.

The program was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the national savings – used for the purchase of gold – to financial savings.