RBI's Sovereign Gold bond opens for subscription today

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).