Gold Sovereign Bond Program Opens Today: Check Rates & More Details

Gold Sovereign Bond Program: If you are planning to buy gold at a low price, there is good news for you. The Modi government will sell cheap gold from today. However, it will not be in physical form but will be sold in the form of gold bonds.

The ninth round of the Government of India’s 2021-22 Gold Sovereign Bond program will be open for subscription from Monday, January 10. It will remain open for five days – until January 14.

The Reserve Bank of India (RBI) set the issue price at ??4,786 per gram for the diet.

The central government, in consultation with the RBI, decided to offer a discount of ??50 per gram less than face value for investors applying online and payment against demand is done digitally.

“For these investors, the issue price of gold bonds will be ??4,736 per gram of gold, “according to an RBI statement.

The issue price of Series VIII, which was open for subscription from November 29 to December 3, 2021 was ??4,791 per gram of gold.

The Gold Sovereign Bond price is set in Indian Rupees based on a simple average of the closing price of 999 purity gold, published by the India Bullion and Jewelers Association Limited for the last 3 business days of the week preceding the subscription point end.

Under the Sovereign Gold Bond program, the RBI issues bonds on behalf of the government.

Investors can buy gold sovereign bonds from banks (except small financing banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognized stock exchanges – the National Stock Exchange of India Limited and the ESB.

Bonds are denominated in multiples of grams of gold with a base unit of 1 gram. The term of the bond is eight years and investors have an exit option after the fifth year, which must be exercised at the next interest payment dates.

The sovereign gold bond program was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the domestic savings – used for the purchase of gold – to financial savings. .

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