Sovereign Gold Bond VIII scheme opens for subscription - Check the details here

The subscription will close on December 03, 2021.

November 29, 2021 10:10 IST | India Infoline News Service
The Sovereign Gold Bond Scheme (SGB) 2021-22 - Series VIII will be open for subscription for five days starting from today. The subscription will close on December 03, 2021.

The issue price for the latest tranche of the Sovereign Gold Bond Scheme has been fixed at Rs4,791 per gram of gold, the Reserve Bank of India (RBI) said on Friday.

"The nominal value of the bond...works out to Rs4,791 per gram of gold," the RBI said.

The Government of India in consultation with the Reserve Bank of India has decided to allow a discount of Rs50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs4,741 (Rupees Four thousand seven hundred forty-one only) per gram of gold, the Ministry of Finance said in the release.

Below are the key details of Sovereign Gold Bonds:

An individual can buy SGB in various ways, including digitally. The bonds will be sold through banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

Further, the maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for Hindu United Family and 20 Kg for trusts and similar entities per fiscal.

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

Investors of SGBs are paid an interest rate of 2.50% per annum payable semi-annually on the nominal value. The capital gains tax arising on redemption of SGB to an individual has been exempted.

The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.

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