Looking for investment? Sovereign Gold Bond Scheme to open for subscription on July 6
Gold has always been considered the safest option for investment. Amidst the pandemic and uncertainities in the market, there has been a surge in demand for gold. If you are looking for an investment in gold, Sovereign Gold Bond Scheme 2020-21-Series IV will be opened for subscription for the period between July 6 and July 10.
The issue price for the Sovereign Gold Bond has been fixed at Rs 4,852 per gram of gold, the Reserve Bank of India said in a statement on Friday.
The central bank in April had announced that the government will issue Sovereign Gold Bonds (SGBs) in six tranches beginning April 20 till September.
Sovereign Gold Bond 2020-21 will be issued by RBI on behalf of the Government of India.
“The nominal value of the bond based on the simple average closing price (published by the India Bullion and Jewellers Association) for gold of 999 purity of the last three working days of the week preceding the subscription period...works out to Rs 4,852 per gram of gold,” the RBI said.
It also said it has been decided by the Government and the RBI to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
As per the notification issued in April, subscription for the gold bonds may be made in the prescribed application form (Form A) or in any other form as near as thereto, stating clearly the grams (in units) of gold and the full name and address of the applicant. Every application must be accompanied by the ‘PAN details’ issued by the Income Tax Department to the investor(s).
Posted By: Tushar Kumar Laleria