Govt lines up two tranches of sovereign gold bonds in H1 FY24
New Delhi: The government has decided to issue two tranches of sovereign gold bonds (SGBs) during the first half of the current financial year. The date for subscription for 2023-24 Series I is June 19-23 while for Series II is September 11-15, a finance ministry statement said.
SGBs will be sold through Scheduled Commercial banks
The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges -- National Stock Exchange of India Limited and Bombay Stock Exchange Limited, it said.
Price of SGB is fixed in Indian rupees
The price of SGB is fixed in Indian rupees based on a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week, preceding the subscription period.
Govt decided to offer a discount of Rs 50 per gram
The government, in consultation with the Reserve Bank of India, has decided 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. The maximum limit of subscription is 4 kilograms for individuals, 4 kilograms for HUF, and 20 kilograms for trusts and similar entities per fiscal year.
KYC norms will be the same as that for the purchase of physical gold
The bonds can be used as collateral for loans. Know Your Customer (KYC) norms will be the same as that for the purchase of physical gold. The sovereign gold bond scheme was launched in November 2015 with the objective to reduce the demand for physical gold and shift a part of the domestic savings used for the purchase of gold into financial savings.
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