The ninth series of the sovereign gold bond scheme 2021-22 of the government of India will open for subscription from Monday (January 10). It will remain open for five days – till January 14.
The Reserve Bank of India (RBI) has fixed the issue price at ₹4,786 per gram for the scheme.
The central government, in consultation with the RBI, has decided to offer a discount of ₹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 ₹4,736 per gram of gold," according to an RBI statement.
The issue price for Series VIII, which was open for subscription during November 29-December 3, 2021 was ₹4,791 per gram of gold.
The price of the sovereign gold bond is fixed in Indian rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.
Under the sovereign gold bond scheme, the RBI issues bonds on behalf of the government.
Investors can buy sovereign gold bond from banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges - the National Stock Exchange of India Limited and BSE.
The bonds are denominated in multiples of grams of gold with a basic unit of 1 gram. The tenor of the bond is for a period of eight years and investors have an exit option after the fifth year, which is to be exercised on the next interest payment dates.
The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings - used for the purchase of gold - into financial savings.