Sovereign Gold Bond Scheme 2021-22- Series-III opens today, check issue price, eligibility and more

New Delhi: The Sovereign Gold Bond Scheme 2021-22- Series-III or the third tranche will be open for subscription from today (May 31) to June 4, 2021.

The issue price for Sovereign Gold Bond Scheme 2021-22, which is open for subscription for five days, has been fixed at Rs 4,889 per gram of gold, the Reserve Bank of India (RBI) said.

Earlier, the government had announced to issue the Sovereign Gold Bond (SGB) in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India.

"The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three working days of the week preceding the subscription period...Works out to Rs 4,889 per gram of gold," said the RBI, which issues the bonds on behalf of the central government.

Government of India, in consultation with the Reserve Bank of India, 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 4,839 per gram of gold," it said.

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.