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2nd tranche of sovereign gold bonds open today: All you need to know

SGBs bear interest at the rate of 2.50 percent (fixed rate) per annum on the amount of initial investment.

May 24, 2021 / 11:09 AM IST
The SGB for the current financial year is issued in six tranches. The first tranche of subscriptions was opened from May 17-May 21.

The SGB for the current financial year is issued in six tranches. The first tranche of subscriptions was opened from May 17-May 21.

As the second tranche of the Sovereign Gold Bond (SGB) scheme 2021-22 opens on May 24, the Reserve Bank of India (RBI) will issue the bonds on behalf of the Government of India.

The central bank announced the issue price for the second tranche of such bonds pegging a gram of gold at Rs 4,842. Further, the Government of India, in consultation with the RBI, has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode.

For such investors, the issue price of SGB will be Rs 4,792 per gram of gold.

SGBs bear interest at the rate of 2.50 percent (fixed rate) per annum on the amount of initial investment. The interest is credited semi-annually in the bank account of the investor and the last interest is payable on maturity along with the principal.

>What are Sovereign Gold bonds?

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SGBs are government securities denominated in grams of gold and are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds are redeemed in cash on maturity.

>What is the subscription period for the second tranche?

The subscription for the second tranche of SGBs is open from May 24–28, 2021.

>What is the issue date?

The issue date for these bonds is June 1, 2021.

>What are the minimum and maximum limits on investment in SGBs?

The minimum investment in the SGBs is one gram and the maximum limit of subscription of 4 kg for individuals and Hindu Undivided Family (HUF). The limit is increased to 20 kg for trusts and similar entities notified by the government from time to time per fiscal year. In the case of joint holding, the limit applies to the first applicant.

How to buy SGBs?

You can purchase SGBs through banks (except small finance banks and payment banks), designated post offices, Stock Holding Corporation of India Ltd (SHCIL), National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Who can apply?Any person resident in India can apply for SGBs. >What is the schedule for the next tranche?

The SGB for the current financial year is issued in six tranches. The first tranche of subscriptions was opened from May 17-May 21.

Refer to the schedule below as per RBI:
TrancheDate of SubscriptionDate of Issuance
Series IMay 17 - 21, 2021May 25, 2021
Series IIMay 24-28, 2021June 1, 2021
Series IIIMay 31-June 4, 2021June 8, 2021
Series IVJuly 12-16, 2021July 20, 2021
Series VAugust 9-13, 2021August 17, 2021
Series VIAugust 30-September 3, 2021September 7, 2021
 
Smriti Chaudhary
first published: May 24, 2021 11:09 am

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