New Delhi: If you are looking to invest in gold at great prices, here is a chance for you. The Sovereign Gold Bond Scheme 2021-22 series I that had opened for subscription on Monday (May 17, 2021), will close on Friday (May 21, 2021). Bonds will be issued on May 25.

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The issue price for Sovereign Gold Bond Scheme 2021-22 has been fixed at Rs 4,777 per gram, the Reserve Bank of India said. The government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. "For such investors, the issue price of gold bond will be Rs 4,727 per gram of gold," the RBI said.

State Bank of India (SBI) has listed out 6 golden reasons to invest in Sovereign Gold Bonds. SBI tweeted:



1. The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.


2. Secure, no storage hassles like physical gold.


3. Liquidity tradable on exchanges: Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.


4. No GST and making charges unlike physical gold.


5. Can be used as collateral for loans: Bonds can be used as collateral for loans. SBI says that the loan against SGBs would be subject to decision of the bank/financing agency and cannot be inferred as a matter of right.


6. No capital gains tax on redemption.


What is Sovereign Gold Bond Scheme?


Sovereign Gold Bond Scheme are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.


How will the Sovereign Gold Bond Scheme be sold?


The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.


Who can buy Sovereign Gold Bond Scheme?


The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.