The issue price for Sovereign Gold Bond Scheme 2021-22 series III, which has been fixed at Rs 4,889 per gram of gold. The SGB 2021-22 series III has opened for subscription for five days from May 31, the Reserve Bank of India (RBI) said on Friday.
The bond will be restricted for the resident Indians entities including individuals, HUFs, Trusts, Universities, and charitable institutions. For online applications through the nationalized bank, the bond will sale only for individuals, through internet banking channels, and through the mobile app. Customers other than individuals may however approach the bank branch and fill up the application form to apply for the tranche.
The bond will be denominated in units of one gram of gold and multiples thereof. The minimum permissible investment will be 1 gram of gold. The maximum permissible investment will be 1 gram of gold. The maximum limit of subscription shall be 4 kg for individuals and 20 kg for trusts similar entities notified by the government from time to time.
The investors will be paid interest on the amount of initial investment at the rate notified by RBI for a particular tranche at the time of its launch and is payable semi-annually.
The quantity of gold for which the investors pay is protected. Since he receives the ongoing market price at the time of redemption. The SGB offers a superior alternative to hold gold in physical form. The risk and the cost of storage are eliminated. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of RBI or in Demat form.
There may be the risk of capital loss if the market price declines but the investors won’t lose the unit of gold for what they invested.
For every financial year, RBI is issuing the calendar for the SGB release. AS PER THE CALENDAR, SERIES 3 HAS STARTED TODAY from 31st May to 4th June 2021. THE DATE OF ISSUANCE IS JUNE 8,2021.