NEW DELHI: The Centre has fixed the issue price for the first tranche of the Sovereign Gold Bonds 2023-24, which will be open for subscription for five days beginning Monday, at Rs 5,926 per gram.
The specific dates are June 19-23, 2023, with June 27, 2023 being the settlement date, the finance ministry said in a statement.
Buying the bonds will be cheaper if done online and through digital payments as the government after consulting with the Reserve Bank of India has offered a discount of Rs 50 per gram for such investors. They will only have to pay Rs 5,876 per gram.
The bonds will be sold as always through banks, the Stock Holding Corporation of India Limited (SHCIL), designated post offices, and the two recognised stock exchanges -- the National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
The Gold Bond scheme was launched over seven years ago, in November 2015, to help channel a part of domestic savings, used in the purchase of gold, into the financial market.
The price of the bond is fixed on the basis of the simple average closing price of gold of 999 purity for the last three working days of the week preceding the subscription period as published by the India Bullion and Jewellers Association Limited.
The bonds are 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 eight years, with an exit option after the fifth year to be exercised on the next interest payment dates.
The minimum permissible investment is one gram of gold. The maximum limit is 4 kilograms for individuals, 4 kg for Hindu Undivided Families and 20 kg for trusts and similar entities every fiscal (April-March).
The Know-Your-Customer (KYC) norms remain the same as that for the purchase of physical gold.
(With inputs from PTI.)