The Sovereign Gold Bonds 2021-22 will be issued in six tranches from May 2021 to September 2021.
Sovereign Gold Bonds 2021-22 (Series II) will be open for subscription during May 24-28, 2021 with settlement date June 01, 2021. The issue price of the Bond during the subscription period shall be Rs 4,842 per gram, while for online buyers, the price per ten gram will be Rs 4,792 after a discount of Rs 50.
The Sovereign Gold Bonds 2021-22 (Series I) had opened on May 17 and closes on May 21, 2021, with Settlement date May 25, 2021. The issue price of the Series I Bond was Rs 4,777 and Rs 4,727 for online buyers. The issue price of Sovereign Gold Bonds 2021-22 Series II is Rs 65 per 10 gram higher than Series I.
Earlier, the Government of India, in consultation with the Reserve Bank of India, had decided to issue Sovereign Gold Bonds 2021-22. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021.
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 like National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Features of Sovereign Gold Bond 2021-22
The investors will get fixed interest rate of 2.50 percent per annum payable semi-annually on the amount invested.
The bonds are issued by the Reserve Bank of India on behalf of the Government of India. 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 5th year to be exercised on the next interest payment dates.
The 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. 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 redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity, of previous 3 working days published by IBJA Ltd.
The interest on Gold Bonds shall be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). 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.