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Gold August 04, 2020 07:35:03 PM

RBI Gold Bond Scheme Is Now Open for Subscription

Paul Ploumis
ScrapMonster Author
The bonds will be denominated in multiples of grams of gold with a basic unit of 1 gram.

RBI Gold Bond Scheme Is Now Open for Subscription

SEATTLE (Scrap Monster): The Reserve Bank of India (RBI) has announced that the fifth tranche of Sovereign Gold Bond (SGB) Scheme 2020-’21 will be open for subscription from yesterday onwards. The scheme will be open until August 7th. The date of issuance will be August 11th.

The issue price has been fixed at INR 5,334 per gram. The purchases through digital mode will be offered discount of Rs.50 per gram. For such investors, the issue price is fixed as INR 5,284 per gram of gold.

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The bonds will be denominated in multiples of grams of gold with a basic unit of 1 gram. The bonds will have a tenor of eight years, although investors are provided with an exit option after the fifth year.

It must be noted that the issue price of Series IV of the scheme, which was open for subscription from July 6th to 10th, was fixed at INR 4,852 per gram of gold. A last series of gold bonds has already been scheduled for early-September this year.

Launched in 2015, the scheme is part of the central government’s market-borrowing programme. The bond price is calculated on the basis of simple average of closing price for 999 purity gold during the last three business days of the week preceding the subscription period, said the RBI press release.

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