RBI's Sovereign Gold Bond Ninth Series Is Now Open for Subscription

SEATTLE (Scrap Monster):  The ninth tranche of Sovereign Gold Bond (SGB) scheme 2020-’21 is now open for subscription, said the Reserve Bank of India (RBI) press release. The series IX of the scheme, run by the central bank on behalf of the Indian government, will be open until January 1^st, 2021.

According to RBI, the issue price of the new series has been fixed at INR 5,000 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 4,950 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 three business days from December 22^nd to 24^th.

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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.