The Government of India recently announced the dates and issue price of the Sovereign Gold Bond (SGB) Scheme 2022-23 (Series 1). The issue price of the SGB scheme this time is Rs 5091 per gram. The subscription period will be open till 24th June with the settlement date on 28th June 2022.
“In terms of Government of India Notification No.4(6)-B(W&M)/2022 dated June 15, 2022, Sovereign Gold Bonds 2022-23 (Series I) will be opened for subscription during the period June 20-24, 2022 with Settlement date June 28, 2022. The issue price of the Bond during the subscription period shall be ₹5,091 (Rupees five thousand ninety one only) per gram, as also published by RBI in their Press Release dated June 17, 2022,” an official release dated 17th June 2022 said
The government has announced Rs 50 discount for customers applying and paying online for SGB.
“Government of India in consultation with the Reserve Bank of India has decided to allow discount of ₹50 (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 ₹5,041 (Rupees five thousand forty one only) per gram of gold,” the release said.
The last issue price per gram of the sovereign gold bond released in February this year was Rs 5109. It was preceded by SGB Scheme 2021-22 (Series IX) with an issue price of Rs 4786.
Under the SGB scheme, the investors is compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
SGB can be used as collateral for loans. These bonds can also be traded in the market.
The SGB maturity period is 8 years. However, users can make premature redemption after the fifth year on the date on which interest is payable. On redemption, the price paid to the customer is the simple average of the closing price of gold of 999 purity, of the previous three working days published by IBJA Ltd.