Bonds linked to the market price of gold under the government’s Sovereign Gold Bond scheme are available for subscription for three more days, till January 1, 2021. This is the ninth tranche of the SGB or Sovereign Gold Bond programme — in which the Reserve Bank of India (RBI) issues bonds linked to the market value of the yellow metal on behalf of government — which opened for subscription on December 28. After the current instalment, the gold bond scheme will open for subscription for five days each three more times till March 2021.
Here are some important details about the Sovereign Gold Bond scheme:
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For the ninth tranche of gold bonds this financial year, an issue price of Rs 5,000 per unit is applicable. (Also Read: Here Is How Sovereign Gold Bond Price Is Calculated)
After the current instalment, which ends for subscription on Friday, January 1, the gold bond scheme will be available from January 11 to January 15, February 1 to February 5 and March 1 to March 5.
A discount of Rs 50 per unit is applicable for those investing in the Sovereign Gold Bonds online. That means the price of such investors will be Rs 4,950
The gold bonds come with a maturity period of eight years, with an option to exit after the first five years.
A fixed rate of 2.5 per cent per annum is applicable on the Sovereign Gold Bond scheme, payable semi-annually.
The scheme is open to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.
Gold bonds can be purchased in the multiples of one unit, up to certain thresholds for different investors. The upper limit for retail investors and HUFs is 4 kilograms (4,000 units) each per financial year.
How To Invest
The SGBs are sold through commercial banks, the Stock Holding Corporation, designated post offices, and stock exchanges BSE and NSE. The bonds are held in RBI books or in demat form.
The interest earned from gold bonds is taxable. However, the capital gains arising out of redemption are exempted for individual investors.
Gold has appreciated around 32 per cent so far this year, which makes 2020 the second best year for the yellow metal since the 2008 global financial crisis.