Sovereign gold bond issue open for subscription: Price, date & 9 other things you need to know

The Sovereign Gold Bond Scheme 2023-24 - Series II which opened for subscription on Monday, September 11 will close on Friday, September 15.

The issue price is Rs 5,923 per gram of gold while there is a discount of Rs 50 for those investors who subscribe online. For such investors, the issue price of the gold bond will be 5,873 per gram of gold.

The nominal value of the bond is based on the simple average of closing price published by the India Bullion and Jewellers Association Ltd (IBJA)) for gold of 999 purity of the last three working days of the week preceding the subscription period. In this case, it is September 6, September 7 and September 8, 2023.

The SGB will be alloted to the subscribers on Wednesday, September 20, 2023.

The Reserve Bank of India (RBI) on behalf of the Government of India is the issuer of the sovereign gold bonds.

The SGBs will be restricted for sale to resident individuals, HUFs, trusts, universities and charitable institutions.

The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of one gram.

The tenor of the SGB will be for a period of 8 years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.

Minimum permissible investment will be One gram of gold while 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 (April-March).

Payment for the SGBs will be through cash (up to a maximum of Rs 20,000) or demand draft or cheque or electronic banking.

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