On Friday, the RBI fixed the issue price at Rs 5,923 per gram.
“The face value of the bond based on the simple average of the closing price (for gold of 999 purity)… works out to Rs 5,923 per gram of gold,” the RBI said while announcing the issue price of the Sovereign Gold Bond . Scheme 2023-24 Series II (second tranche).
Here’s everything you want to know about the Sovereign Gold Bond program:
- The RBI announced the issue price for the tranche of government gold bonds at Rs 5,923 per gram.
- This issue price is calculated based on the simple average of the closing price of gold with a purity grade of 999.
- Investors who apply online and make digital payments will get a discount of Rs 50 per gram, which takes the issue price for them to Rs 5,873 per gram.
- The subscription period for the bonds runs from September 11 to September 15.
- Investors can buy these bonds through various channels including banks, Stock Holding Corporation of India Ltd (SHCIL), designated post offices and recognized stock exchanges like
- Launched in November 2015, the Sovereign Gold Bond Scheme aims to encourage financial savings over physical gold purchases.
- The price of the bond will be determined in Indian rupees based on the simple average closing price of gold of 999 purity grade published by the
India Bullion and Jewelers AssociationLtd for the last 3 working days of the week prior to the subscription period.
- Bonds are available in multiples of grams, with a minimum investment of 1 gram, and have a term of 8 years with an exit option after the fifth year.
- Individual investors have a maximum subscription limit of 4kg, while trusts and similar entities can subscribe for up to 20kg per financial year.
- The Know Your Customer (KYC) norms for purchasing these bonds are the same as those for physical gold purchases.