New Delhi: The Reserve Bank of India is all set to put the seventh tranche of Sovereign Gold Bonds up for subscriptions starting from October 25. The issue will be open till October 29 and the settlement date has been set at November 2.
For the 7th Sovereign Gold Bond 2021-22, the RBI has fixed the issue price at Rs 4,765 per gram of gold, according to a notification by the Ministry of Finance.
"Government of India in consultation with the Reserve Bank of India has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode," the Ministry said.
"For such investors, the issue price of `Gold Bond` will be Rs 4,715 per gram of gold." the ministry added in its official statement.
For those uninitiated, Sovereign Gold Bonds or SGBs are government securities denominated in grams of gold. For many investors, they are substitutes for holding physical gold, as they offer several other benefits such as tax perks.
Moreover, investments in Sovereign Gold Bonds are safe because they are backed by the Indian government. Also Read: Rakesh Jhunjhunwala: Stock in Big Bull’s portfolio jumps 115% in 12 months, are you investing?
Under the scheme, 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 the government. Also Read: Buying gold this Diwali, Dhanteras? Check top 5 advantages of digital gold investments