Sovereign Gold Bond scheme are denominated in multiples of gram(s) of gold with a basic unit of 1 gram.The Sovereign Gold Bonds (SGBs) 2019-20, Series V will open forsubscription from October 7-11, an official statement said on Friday.
SGB is a certificate scheme in which the Reserve Bank of India (RBI) issues bonds on behalf of Government of India.
The issue price of the bond during the subscription period will be Rs 3,788 per gram with settlement date of October 15, 2019, said Ministry of Finance in a statement.
The RBI will be offering a discount of Rs 50 per gram on the original value to investors applying online.EligibilityThe Sovereign Gold Bond (SGB) is restricted for sale to resident individuals, HUFs (Hindu Undivided Families), trusts, universities and charitable institutions, according to RBI.DenominationThe bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram.TenorThe tenor of the bond is for a period of eight years with exit option after fifth year to be exercised on the interest payment dates.Investment LimitThe minimum permissible amount allowed for investment in SGB is one gram of gold.
The maximum limit of the subscription is four kilograms for individuals and HUFs, and 20 kilograms for trusts and similar entities per fiscal year (April-March), which is notified by the government from time to time.Issue priceThe price of bond is fixed in rupees on the basis of a simple average of closing price of gold of 99.9 per cent purity, published by the India Bullion and Jewellers Association Limited for the last three working days of the week preceding the subscription period, according to RBI.Tradability Bonds are tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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