RBI fixes gold bond issue price at Rs 3,119 per gram

The issue price for the fourth tranche of sovereign gold bond has been fixed at Rs 3,119 per gram of gold, the Reserve Bank of India (RBI) said in a statement on its website.

The rate was fixed based on the average of closing price of gold of 999 purity for the week July 11 to 15, as published by the India Bullion and Jewellers Association Ltd, the statement added. The bonds, to be issued on August 5, is the first gold bond issue under the Sovereign Gold Bond scheme, which can be purchased on both the BSE and the National Stock Exchange. Applications for the bonds would be accepted on July 18-22, the central bank said.
 

The terms and conditions of the bonds remained the same as that of the previous issuances. The bond will be denominated in multiples of grammes and will have a tenor of eight years, with an exit option at the end of the fifth year. The minimum permissible investment limit would be one gram and the maximum investible limit 500 g per person per financial year.

In the first three tranches, the government mobilised Rs 1,320 crore, or about 5,000 kg of gold equivalent, from about 450,000 investors.