RBI Fixes Sovereign Gold Bond Issue Price At Rs 6,199 Per Gram
The Reserve Bank of India (RBI) declared the issue price for the forthcoming Sovereign Gold Bond tranche at Rs 6,199 per gram, set to be available for subscription from 18-22 December 2023.
The SGBs, part of the Scheme 2023-24 - Series III, will be accessible via various channels such as scheduled commercial banks (except certain types), Stock Holding Corporation of India (SHCIL), Clearing Corporation of India (CCIL), designated post offices, National Stock Exchange of India Limited and Bombay Stock Exchange.
RBI stated that the nominal bond value, calculated based on the average closing gold price (999 purity), stands at Rs 6,199 per gram. Additionally, the government, in collaboration with RBI, plans to offer a discount of Rs 50 per gram for online applicants using digital payment methods, setting the issue price at Rs 6,149 per gram for these investors.
Series IV of the Gold Bond Scheme 2023-24 is slated for 12-16 February, featuring a fixed annual interest rate of 2.50 per cent paid semi-annually on the nominal value. The maximum subscription limits are 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year.
The Finance Ministry disclosed that the bond's tenure is eight years, allowing premature redemption after the fifth year on the interest payment date. RBI manages the issuance of these bonds on behalf of the central government.
