RBI's Gold Bond Scheme Now Open for Subscription

SEATTLE (Scrap Monster): The tenth tranche of Sovereign Gold Bond (SGB) scheme 2020-’21 is now open for subscription, said the press release issued by the Reserve Bank of India (RBI). The series X of the scheme, run by the central bank on behalf of the Indian government, will be open effective today, January 11^th, 2021 until January 15^th, 2021 for subscription. The settlement date of the same is fixed at January 19, 2021.

According to RBI, the issue price of the new series has been fixed at INR 5,104 per gram of gold. Additionally, investors who apply online and make payment through digital mode will be offered a discount of INR 50 per gram from the nominal value. For such investors, the issue price has been fixed at INR 5,054 per gram. The nominal value is based on the simple average closing price published by the India Bullion and Jewellers Association (IBJA) for 999 purity gold for the latest three business days.

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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 by selling the bonds on stock exchanges. The bonds could be purchased through commercial banks, designated post offices, stock exchanges BSE and NSE and the Stock Holding Corporation.

The SGB was initially launched in November 2015, with the aim of reducing the demand for physical gold in the country.