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Sixth tranche of Sovereign Gold Bond opens on Aug 31; check out issue price

Reserve Bank of India (RBI) on Friday said that the sixth tranche of Sovereign Gold Bond scheme will open for subscription from August 31 and close on  September 4

twitter-logoBusinessToday.In | August 28, 2020 | Updated 21:05 IST
Sixth tranche of Sovereign Gold Bond opens on Aug 31; check out issue price
Sovereign Gold Bonds

Reserve Bank of India (RBI) on Friday said that the sixth tranche of Sovereign Gold Bond scheme will open for subscription from August 31 and close on  September 4. The issue price for the sixth tranche has been fixed at Rs 5,117 per gramme.

"The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. August 26 August 28, 2020, works out to Rs 5,117 per gramme of gold," the RBI added.

The central bank further said the government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gramme less than the nominal value to investors applying online and the payment against the application is made through digital mode.

"For such investors, the issue price of gold bonds will be Rs 5,067 per gramme of gold," the RBI also said.

Sovereign Gold Bond is issued by the RBI on behalf of the government. The bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), Trusts, Universities and Charitable Institutions.

The minimum permissible investment is 1 gramme of gold and the maximum limit of subscription shall be 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal.

The gold bond will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India (SHCIL), designated post offices, and recognised stock exchanges (NSE and BSE).

Also read: Sovereign Gold Bond V Series opens for subscription: All you need to know

Also read: Gold price rises after 2 days; silver rates at Rs 65,500

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