Govt to issue Sovereign Gold Bond scheme in four tranches from Oct 2021 - Mar 2022

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

Oct 22, 2021 09:10 IST India Infoline News Service

In consultation with the RBI, the government has decided to issue Sovereign Gold Bonds in four tranches from October to March 2022.

The first tranche 2021-22 Series VII will be available for subscription between October 25 - 29, 2021. The issuance will be on November 02, 2021.

Subscription for the second tranche 2021-22 Series VIII will be available between November 29- December 03, 2021. The issuance will be on December 07, 2021.

Furthermore, the subscription for the third tranche 2021-22 Series IX will be from January 10-14, 2022 and the issuance will be on January 18, 2022. The subscription for the fourth tranche 2021-22 Series X will be done from February 28- March 04, 2022 and issuance will be on March 08, 2022.

The Bonds will be sold through Scheduled Commercial 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 recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.

The tenor of the Bond will be for a period of 8 years with exit option after 5thyear to be exercised on the next interest payment dates.

Minimum permissible investment will be 1 gram of gold.

The maximum limit of subscription shall be 4 KG forindividual, 4 Kg for HUF and 20 Kg for trusts andsimilarentities per fiscal (April-March) notified by the Governmentfrom time to time. A self-declaration to this effect will beobtained. The annual ceiling will include bondssubscribed under different tranches during initial issuanceby Government and those purchased from the SecondaryMarket.

In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.

Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be `50 per gram less for those who subscribe online and pay through digital mode.

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