Sovereign Gold Bond (SGB) Scheme : Next Price Fixed
The issue price of the next tranche of Sovereign Gold Bond has been fixed at Rs 6,263 per gram, the Reserve Bank said in a statement recently.
- Sovereign Gold Bond (SGB) Scheme are government securities denominated in grams of gold.
- The SGB Scheme was first launched by the Government of India (GOI) on October 30, 2015.
- They are substitutes for holding physical gold. Investors have to pay the issue price, and the bonds will be redeemed upon maturity.
- The bond is issued by the Reserve Bank on behalf of the GOI.
- The bonds will be restricted for sale to resident Indian entities, including individuals (in their capacity as individuals, or on behalf of the minor child, or jointly with any other individual), Hindu Undivided Family (HUF), Trusts, Universities and Charitable Institutions.
- The bonds are issued in denominations of one gram of gold and in multiples thereof.
- The minimum investment in the bond shall be one gram, with a maximum subscription limit of 4 kg for individuals, 4 kg for HUFs, and 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 investment limit of 4 KG will be applied to the first applicant only.
- The tenor of the bond will be for a period of 8 years, with an exit option in the 5th, 6th, and 7th years, to be exercised on the interest payment dates.