New Delhi, Oct 13 (PTI) The government today fixed thepurchase price of Sovereign Gold Bond (SGB) at Rs 2,987 pergram the subscription for which will open on October 16, a fewdays before Dhanteras festival.
Dhanteras is considered auspicious for buying gold andjewellery.
For the subscription period from October 16-18, thenominal value of the bond based on the simple average closingprice for gold of 999 purity of the last three business daysof the week preceding the subscription period, that is October11-13, 2017 works out to Rs 2,987 per gram, the RBI said in astatement.
This is a part of SGB calender announced till Decemberspread over 12 weeks. As per the calender it will open forsubscription from Monday to Wednesday of every week startingfrom October 9 until December 27. The first tranche under thisclosed on October 11.
The settlement will be made on the first business day ofthe next week for the applications received during a givenweek.
"Government of India, in consultation with the ReserveBank of India (RBI), has decided to offer discount of Rs 50per gram less than the nominal value to those investorsapplying online and the payment against the application ismade through digital mode," it said.
For such investors, the issue price of Gold Bond will beRs 2937 per gram of gold.
Under the scheme, the bonds are denominated in units ofone gram of gold and multiples thereof. Minimum investment inthe bonds is one gram with a maximum limit of subscription of500 grams per person per fiscal year (April–March).
The maximum limit of subscribed would be 4 kg forindividual and HUF and 20 kg for trusts and similar entitiesper fiscal (April-March) notified by the government from timeto time.
The annual ceiling will include bonds subscribed underdifferent tranches during initial issuance by the governmentand those purchase from the secondary market.
Investors in these bonds have been provided with theoption of holding them in physical or dematerialised form. PTIDP CSMR.
This is unedited, unformatted feed from the Press Trust of India wire.