How and when to buy Sovereign Gold Bonds in 2021 amid Covid-19 pandemic

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Updated: May 15, 2021 10:26 AM

Sovereign Gold Bond Scheme 2021-22: The Government of India has fixed the issue price for Sovereign Gold Bond (SGB) Scheme 2021-22 at Rs 4,777 per gram.

Sovereign Gold Bond Scheme 2021-22The government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

Sovereign Gold Bond Scheme 2021-22: The Government of India has fixed the issue price for Sovereign Gold Bond (SGB) Scheme 2021-22 at Rs 4,777 per gram. This issue of SGB will be open for subscription for five days from May 17. If you are interested in subscribing to SGB later in the year amid Covid-19 pandemic, five more tranches of SGB will be open for subscription in 2021. In an official statement, the Department of Economic Affairs (DEA) said, “Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021.”

The Sovereign Gold Bonds will be issued by the RBI on behalf of the Government of India. The official statement said that the Sovereign Gold Bond Scheme 2021-22 Series-I or first tranche will be open for subscription from May 17, 2021, to May 21, 2021. The bonds will be issued on May 25.

When to buy Sovereign Gold Bonds: SGB Scheme Calendar 2021

SGBs will be issued this year as per the following calendar:


Where can you buy Sovereign Gold Bonds?

According to DEA statement, the Bonds will be sold through Scheduled Commercial 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 and Bombay Stock Exchange Limited.

Sovereign Gold Bonds features

SGB price: The price of Sovereign Gold Bonds is fixed on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last three working days of the week preceding the subscription period.

SGB denomination: Sovereign Gold Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.

SGB Tenor: 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.

Minimum and Maximum Limit: Minimum permissible investment will be 1 gram of gold. The maximum limit of subscription shall be 4 KG for individual,
4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market.

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