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Check Important Dates, Discount, Interest


Sovereign Gold Bonds Subscription For 12th Trance Ends Today: All You Need To Know

Sovereign Gold Bonds are available at an issue price of Rs 4,662 per unit

Sovereign Gold Bond: The 12th and last series of the government’s Sovereign Gold Bond (SGB) scheme 2020-21 is open for subscription till today, March 5. The government opened the last series of the gold bond scheme 2020-21 on Monday, March 1, for a period of five days. The Reserve Bank of India (RBI) issues interest-paying bonds linked to the market price of gold, as part of the gold bond scheme. Starting from October 2020, the gold bonds were issued in series of six tranches. For the 12th and last installment of the gold bond scheme 2020-21, an issue price of Rs 4,662 per unit, equivalent to the value of one gram of gold, is applicable. (Also Read: Budget 2021: Section 47 Of I-T Act Must Be Amended With Respect To Gold Bonds Scheme )

Here are some key details about the government-run Sovereign Gold Bond scheme: 

Issue Price

Under the 12th tranche, each gold bond (equivalent to one gram of gold) is priced at Rs 4,662, according to the central bank. The rate is decided on the basis of spot prices provided by the Mumbai-based India Bullion and Jewellers Association (IBJA).  
 

Important Dates

The 12th tranche of the gold bond scheme opened for subscription on Monday, March 1, and is available for investing till today, March 5, 2021

Discount

A discount of Rs 50 per unit is applicable for those investing in the gold bonds online, and the payment against the application is made through any of the digital modes. For investors paying online, the issue price of the gold price will be Rs 4,612 per gram of gold. (Also Read:Here Is How Sovereign Gold Bond Price Is Calculated)

What Experts Say

“The 12th and the last tranche of the Sovereign Gold Bond for FY21 are priced at Rs 4,662/gm. Investors applying online will get a discount of Rs 50/gm. Investment in paper gold is the best and the most effective way of investing in yellow metal. Gold should have an allocation of 5-20 per cent of any portfolio depending on the risk appetite,” said Nish Bhatt, Founder and CEO, Millwood Kane International.

Who Can Invest

The sovereign gold bond scheme is open to resident individuals, Hindu Undivided Families (HUFs), trusts, charitable institutions, as well as universities. According to the Reserve Bank, individual investors with subsequent change in residential status from resident to non-resident can continue to hold the bond till early redemption
 

How To Invest

The gold bonds are sold through commercial banks, the Stock Holding Corporation, designated post offices, and the stock exchanges BSE and NSE. They are held in the RBI books or in a demat form. The minimum permissible investment is one gram of gold, for the scheme,

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