The issue price for the next tranche of Sovereign Gold Bond Scheme 2022-23, which will open for subscription for five days from Monday, has been fixed at Rs 5,409 per gram of gold, the Reserve Bank of India said on Friday.
The Sovereign Gold Bond Scheme 2022-23 - Series III will be open for subscription from December 19-23, 2022. "The nominal value of the bond...works out to Rs 5,409 per gram of gold," the RBI said.
Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
"For such investors, the issue price of Gold Bond will be Rs 5,359 per gram of gold," RBI said.
The RBI issues the bonds on behalf of the Government of India.
The Sovereign Gold Bonds (SGBs) 2022-23 Series IV will open for subscription during March 06-10, 2023, the finance ministry had said on Thursday.
Price of SGB is fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period.
The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and stock exchanges -- NSE and BSE.
The tenor of the bonds will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.
The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
The maximum limit of subscription is 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year.
The bonds can be used as collateral for loans.
Know Your Customer (KYC) norms will be the same as that for purchase of physical gold.
The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings.
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