 "gold bond")
The government has fixed the issue price at Rs 5,926 per gram of gold for the first tranche of the Sovereign Gold Bond Scheme 2023-24, which will open for subscription for five days from Monday.
The issue will be opened for subscription during the period June 19-23, 2023, with the settlement date of June 27, 2023, the finance ministry said in a statement on Friday.
The issue price of the bond during the subscription period would be Rs 5,926, it said.
The government in consultation with the Reserve Bank of India 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, it said.
For such investors the issue price of Gold Bond will be Rs 5,876 per gram of gold, it added.
The bonds will be sold through banks Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges -- National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
The scheme was launched in November 2015 with the 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.
The price of the bond is fixed in Indian rupees on the basis of the simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.
The bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram. The tenor of the bond will be for a period of 8 years, with an exit option after the 5th year to be exercised on the next interest payment dates.
The minimum permissible investment is 01 gram of gold. The maximum limit of subscription is 4 kilograms for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).
The Know-your-customer (KYC) norms will be the same as that for the purchase of physical gold.
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