Sovereign Gold Bond Scheme 2021-22 opens: Issue price, discount, other details 

The ninth tranche of the Sovereign Gold Bond Scheme 2021-22 has opened for subscription for five days from today (January 10) with its settlement date being January 18. Nominal value for gold of 999 purity of the last three business days of the week preceding the subscription period (January 5, January 6 and January 7) works out to Rs 4,786 per gram, which has been published by the India Bullion and Jewellers Association (IBJA).
 
Government of India has also decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and if the payment against the application is made online. For such investors, the issue price of the Gold Bond will be Rs 4,736 per gram, as per a Reserve Bank of India (RBI) release.
 
These bonds will be denominated in multiples of gram (s) of gold with a basic unit of 1 gram. Tenor of this bond will be for 8 years with an exit option after 5th year to be exercised on the next interest payment dates. Minimum permissible investment limit is 1 gram of gold while the maximum limit of subscription is 4kg (individuals and HUF) and 20 kg for trusts and similar entities per fiscal (April-March).

In another release dated October 22, 2021, the central bank said that these bonds will be sold via scheduled commercial banks (excluding RRBs, small finance banks and payment banks); designated Post Offices; Stock Holding Corporation of India Limited (SHCIL); Clearing Corporation of India Limited and recognised bourses (NSE, BSE).

For the unversed, the objective of this scheme, launched back in November 2015, is to reduce demand for physical gold and shift a part of the domestic savings that are used for purchase of gold into financial savings.

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