Sovereign Gold Bond Scheme 2021-22 Series VI opens Monday: price, discount, key details
The Reserve Bank of India has announced the Sovereign Gold Bond Scheme 2021-2022, Series 6, which will be open for subscription for five days from August 30 to September 3, 2021. The issue price of the next tranche of the Sovereign Gold Bond Scheme 2021-22, was set at Rs 4,732 per gram of gold. “The face value of the bond … is Rs 4,732 per gram of gold,” the central bank said on Friday. The government, in consultation with the Reserve Bank of India (RBI), is also offering a discount of Rs.50 per gram. below face value for investors applying online and where payment against demand is made via digital mode.
“For these investors, the issue price of the gold bond will be Rs 4,682 per gram of gold,” the RBI said. was launched in November 2015. The price of the gold bond is decided based on the simple average of the closing prices of 999 purity gold, published by the Indian Bullion and Jewelers Association Limited for the last three working days of the week preceding the subscription period.
Previously, the government announced the issuance of Sovereign Gold Bonds (SGB) in six tranches from May 2021 to September 2021. The RBI issues the bonds on behalf of the Indian government.
Who can all invest in these Bonds?
Anyone residing in India, undivided Hindu families, trusts, universities and charitable institutions are eligible to invest in the Sovereign Gold Bond program. A minor is also eligible to invest in the Sovereign Gold Bond program provided the application is made by the guardian on their behalf. These bonds are denominated in multiples of gram (s) of gold with a base unit of 1 gram. The term of the obligation is 8 years with an exit option at the end of the 5th year to be exercised at the next interest payment dates. The minimum authorized investment is 1 gram of gold. The maximum subscription limit is 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities by fiscal (April-March).
Can I apply online?
Yes. If you want to purchase this bond, you can apply online on the website of the listed commercial banks. The issue price of the gold bonds will be 50 per gram less than the face value for investors applying online and payment against the application is made via digital mode.
Can you opt for early redemption and redemption?
The early withdrawal option can be used by investors after the fifth year from the date of issue. If someone bought the bonds in 2015, the cashout option is available from 2020. Another incentive to buy this bond is its portability. If someone is ready to withdraw from the investment before even 5 years, then he or she can get in touch with the bank. In the event of early redemption, investors can contact the bank / SHCIL offices / Post office / agent concerned thirty days before the coupon payment date. However, the important point here is to note that an early redemption request can only be satisfied if the investor presents himself at the relevant bank / post office at least one day before the coupon payment date.
Can you use these bonds as collateral?
There is a great advantage to buying these bonds which these bonds qualify to be used as collateral for a loan from banks, NBFCs and other financial institutions, however the loan to value ratio would be similar to that of loans. gold at the moment. The Know Your Customer (KYC) standards are the same as for the purchase of physical gold.
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