The central government has announced the schedule for the Sovereign Gold Bond Scheme 2021-22. The gold bond scheme will be issued in six tranches, starting from May 2021 to September 2021.
“The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021,” ministry of finance said in a statement on Wednesday.
Series I of Sovereign Gold Bond Scheme 2021-22 will remain open from May 17 to May 21. The second tranche of Sovereign Gold Bond will be open for subscriptions from May 24 to May 28. According to the third trance is between May 31, remaining open for subscription till June 4.
The Series IV will begin on July 12 and will end on July 16. The fifth tranche is between August 9 and August 13. Lastly, the sixth tranche is between August 30- September 3, 2021.
The gold bonds will be sold through the scheduled commercial banks, except for the small finance banks and payment banks, designated post offices, recognized stock exchanges such as Bombay Stock Exchange Limited and National Stock Exchange of India, and Stock Holding Corporation of India Limited.
Who can buy?
The bonds will be issued by Reserve Bank of India on behalf of the central government. It will be restricted for sale to resident individuals, HUFs, trusts, universities and charitable Institutions.
The gold bonds will be denominated in multiples of gram(s) of gold with a basic unit of one gram. The minimum permissible investment will be one gram of gold during the subscription window. The tenor of the bond will be for a period of 8 years with exit option after fifth year.The minimum investment in the gold bonds shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities. In case of joint holding, the limit applies to the first applicant, the central bank clarified.
The Sovereign Gold Bond will provide an assured return of 2.50% per annum payable semi-annually on the nominal value. The bond will be tradable on exchanges, if held in demat form. A specific request for the same must be made in the application form itself. It can also be transferred to any other eligible investor.
These securities are also eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC).
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