Golden opportunity to invest in gold at a discount! SGB Scheme opens on June 20 for subscription

RBI said the first tranche of Sovereign Gold Bond (SGB) for 2022-23 will open for subscription for five days from June 20.

New Delhi: The Reserve Bank of India (RBI), on Thursday (June 16), announced that the first tranche of Sovereign Gold Bond (SGB) for 2022-23 will open for subscription for five days from June 20. With the opening of the subscription of the SGB scheme, investors will get a chance to get a discount on investing in the yellow metal. However, for getting a discount on gold investment, one needs to invest in the SGB scheme via online modes. For the unversed, the RBI issues sovereign gold bonds on behalf of the Government of India. 

RBI also said in its statement that the second tranche of the SGB 2022-23 Series II will be available for subscription during August 22-26, 2022. So, investors missing the opportunity to invest in the first tranche of the scheme can put their money on yellow metal with SGB. 

The central bank said the price of SGB will be fixed in rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period.

Eligibility for investing in Sovereign Gold Bond (SGB) 

Resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions can invest in SGB schemes offered by the RBI on behalf of the Indian government. 

Tenure of Sovereign Gold Bond (SGB) 

RBI said that the tenor of the SGB will be for a period of eight years with an option of premature redemption after the 5th year to be exercised on the date on which interest is payable. 

Discount on Gold Investment

Investors subscribing to the SGBs via online methods and paying via digital mode will have to pay Rs 50 less per gram. Investors are required to make a minimum investment in one gram of gold.

On the other hand, the maximum limit of subscription is 4 Kg for individuals, 4 Kg for HUFs and 20 Kg for trusts and similar entities per fiscal year.