Sovereign Gold Bonds Open For Subscription: Here's All You Need To Know

Sovereign Gold Bond: The tenth tranche of the government's Sovereign Gold Bond scheme opened for subscription on Monday, January 11, for a period of five days till Friday (January 15). Under the gold bond scheme, the Reserve Bank of India (RBI) issues interest-paying bonds linked to the market price of the yellow metal. After the current series, the gold bond scheme will be available two more times till March 2021. For the tenth installment of the gold bond scheme, an issue price of Rs 5,104 per unit, equivalent to the value of one gram of gold, is applicable. The current issue price comes at a time when gold has witnessed a sharp drop in prices and is trading at levels of Rs 49,000 per 10 grams on the multi-commodity exchange (MCX).
 

Sovereign Gold Bond: The tenth tranche of the government's Sovereign Gold Bond scheme opened for subscription on Monday, January 11, for a period of five days till Friday (January 15). Under the gold bond scheme, the Reserve Bank of India (RBI) issues interest-paying bonds linked to the market price of the yellow metal. After the current series, the gold bond scheme will be available two more times till March 2021. For the tenth installment of the gold bond scheme, an issue price of Rs 5,104 per unit, equivalent to the value of one gram of gold, is applicable. The current issue price comes at a time when gold has witnessed a sharp drop in prices and is trading at levels of Rs 49,000 per 10 grams on the multi-commodity exchange (MCX).
 

Here are some key details about the government-run Sovereign Gold Bond scheme: 

Important Dates

The tenth tranche of the gold bond scheme, which opened for subscription on Monday, January 11, will be available for investing till Friday (January 15). 

Discount

A discount of Rs 50 per unit is applicable for those investing in the gold bonds online, and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be Rs 5,054 per gram of gold. (Also Read: Here Is How Sovereign Gold Bond Price Is Calculated)

Term

The gold bonds come with a maturity period of eight years, with an option to exit from the term after the first five years.

Issue Price

Each gold bond (equivalent to one gram of gold) is priced at Rs 5,104 under the tenth installment. The rate is arrived at on the basis of spot prices provided by the Mumbai-based India Bullion and Jewellers Association (IBJA).  
 

Eligible Investors

The gold bond scheme is open to resident individuals, Hindu Undivided Families (HUFs), trusts, universities, as well as charitable institutions. According to RBI, individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption or maturity.
 

How To Invest

The sovereign gold bonds are sold through commercial banks, the Stock Holding Corporation, designated post offices, as well as stock exchanges BSE and NSE. The bonds are held in RBI books or in a demat form.