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Sovereign Gold Bond Scheme was launched by the Indian Govt in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for the subscription in tranches by RBI in consultation with GOI. RBI notifies the terms and conditions from time to time.
As per RBI instructions "Every application must be accompanied by the PAN Number, issued by the Income Tax Department to the investor(s)", as the PAN Number of the first/sole applicant is mandatory.
Key Points
- These bonds are issued by the RBI on behave of the Government of India, hence safe and secure.
- The bonds will be denominated in multiples of grams of gold with a basic unit of 1gram.
- The tenor of the bond will be a period of 8 years, with exit options from the 5th year.
- The maximum limit of subscribed shall be 4 kg for an individual. And 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).
- The payments shall be through cash payment(up to a maximum of Rs.20,000/-) or DD or cheque or electronic banking.
- The investors will be compensated at a fixed rate of 2.5% per annum, payable semi-annually on the nominal value.
- The bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
The official site of RBI Press Release for the Sovereign Gold Bond Scheme 2021-22.
Please get the official downloadable pdf file here.
The subscription period for 2021-22 Series VII will be from October 25th - 29th, 2021. The bonds for the same will be issued on 2nd November 2021.
Bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognized stock exchanges ( National Stock Exchange of India and Bombay Stock Exchange).
The price of the bonds will be fixed in Indian rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Ltd for the last three working days of the week preceding the subscription period.
Online buyers have the advantage of getting Rupees 50/- less per gram. So, what are you waiting for grab the best investment scheme and make use of it? Compared to physical gold, here we do not have wastage and making charges. It's just the gold price you pay for, with secured storage and good returns.
Conclusion:
If you're a person trying to invest your hard-earned money with secured storage and good returns then you can opt for SGB. But, also make sure the money you invest can only be withdrawn or exit the scheme only from the 5th year of investment.
Hope you found this article useful! Happy Investment!
