The first tranche of Sovereign Gold Bond (SGB) for 2022-23 will open for subscription for 5 days from June 20, the Reserve Bank of India stated on Thursday.
The RBI additional stated that the second tranche (2022-23 Series II) will probably be out there for subscription throughout August 22-26, 2022.
The central financial institution points the bonds on behalf of the Government of India, and these bonds are restricted on the market to resident people, Hindu Undivided Families (HUFs), trusts, universities and charitable establishments.
“The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable,” the RBI stated, and added, minimal permissible funding will probably be one gram of gold.
In 2021-22, SGBs had been issued in 10 tranches for an mixture quantity of Rs 12,991 crore (27 tonnes).
The most restrict of subscription is 4 Kg for people, 4 Kg for HUFs and 20 Kg for trusts and comparable entities per fiscal 12 months.
The RBI additional stated the worth of SGB will probably be fastened in rupees on the idea of a easy common of the closing worth of gold of 999 purity, revealed by the India Bullion and Jewellers Association Limited (IBJA) for the final three working days of the week previous the subscription interval.
The difficulty worth of the SGBs will probably be much less by Rs 50 per gram for the traders who subscribe on-line and pay by digital mode.
“The investors will be compensated at a fixed rate of 2.5 per cent per annum payable semi-annually on the nominal value,” the central financial institution stated.
The SGBs are offered by banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), publish places of work and the 2 inventory exchanges (NSE and BSE).
The sovereign gold bond scheme was launched in November 2015, with an goal to cut back the demand for bodily gold and shift part of the home financial savings — used for the acquisition of gold — into monetary financial savings.
Source: www.financialexpress.com”