Sovereign Gold Bond 2020-21 Scheme: Subscription for the tenth tranche of the government’s Sovereign Gold Bond (SGB) 2020-21 programme will end on Friday, January 15. After the current issue, Series XI of the gold bond 2020-21 scheme will be available for five days starting February 1, 2021. Under the gold bond scheme, the Reserve Bank of India issues interest-paying bonds linked to the market price of gold. The scheme comes with benefits such as discounts on online subscription when payments are made through digital modes. The Sovereign Gold Bonds are aimed at restricting gold imports for the country (Track Current Gold Rates Here)
The current tranche of the gold bond scheme comes at a time when both gold and silver have witnessed a steep decline in prices amid volatile trading sessions on the multi-commodity exchange (MCX).
Here are some key facts about the government-run Sovereign Gold Bond scheme:
Who Can Buy: Resident individuals, Hindu Undivided Families (HUFs), trusts, universities as well as charitable institutions can put in their funds in gold bonds, subject to investment limits.
Issue Price: An issue price of Rs 5,104 per gram is applicable to Series X of the Sovereign Gold Bond scheme.
Where To Buy: The eligible entities can purchase the gold bonds from the designated post offices, stock exchanges BSE and NSE, as well as the the Stock Holding Corporation.
Online Discount: A discount of Rs 50 per unit is applicable for those investing online, and the payment against the application is made through digital mode. For such investors, the issue price of the gold bond will be Rs 5,054 per gram of gold, according to the Reserve Bank of India.
Investment limit: A minimum size of one gram and a maximum limit of four kilograms of gold can be acquired by eligible individuals and HUFs in a financial year. Trusts and other such entities can buy up to 20 kilograms in one financial year.
Issuance form: The Gold Bonds will be issued as Government of India stock under the GS Act, 2006. The investors will be issued a holding certificate. The bonds are eligible for conversion into the demat form.
Redemption price: The redemption price will be in rupess, based on a simple average of the closing price of gold of 999 purity, of the previous three working days published by India Bullion and Jewellers Association (IBJA) Limited