The Business Bytes
TBB BUREAU
NEW DELHI, DEC 15, 2022
The Government, through the Reserve Bank of India (RBI), will issue two tranches of Sovereign Gold Bonds, which will open for public subscription in December 2022 and March 2023.
Sovereign Gold Bonds (SGBs) 2022-23-Series-III will open for subscription during December 19- 23, 2022 and 2022-23-Series-IV during March 06-10, 2023, the finance ministry said in a statement on Thursday.
The SGBs will be sold through scheduled commercial banks (except small finance banks, payment banks and regional rural banks), Stock Holding Corporation of India Ltd (SHCIL), Clearing Corporation of India Ltd (CCIL), designated post offices and recognised stock exchanges, namely the National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd.
The SGBs will be restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions.
The tenure of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable, while the minimum permissible investment will be one gram of gold.
The price of SGB will be fixed in Indian rupees on the basis of a simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Ltd (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less by Rs 50 per gram for the investors who subscribe online and pay through digital mode.
The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
The maximum limit of subscription is 4 kilogram for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year.
