Nagaland News Watch

Discount For Online Investors, Fixed Price Sovereign Gold Bond, Issue Starts On February 12; See Details

<p>Issue Price of Sovereign Gold Bond: The Reserve Bank said on Friday that the issue price of the next tranche of Sovereign Gold Bond, which will be available for subscription for five days starting on Monday, has been set at Rs 6,263 per gram.</p>
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<p>On behalf of the Indian government, the bonds are issued by the Reserve Bank of India.</p>
<p>The central bank said, “The nominal value of the bond… works out to Rs 6,263 per gramme of gold.”</p>
<p><strong>February 2024 Sovereign Gold Bond</strong></p>
<p>Opening Date for Sovereign Gold Bonds: Subscriptions for the Sovereign Gold Bond Scheme 2023–24 – Series IV will be accepted from February 12–16, 2024.</p>
<p><strong>How Can I Purchase Sovereign Gold Bonds?</strong></p>
<p>The National Stock Exchange of India Limited, Bombay Stock Exchange Limited, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and scheduled commercial banks (apart from small finance banks, payment banks, and regional rural banks) will all sell the SGBs.</p>
<p><strong>RBI’s Sovereign Gold Bond Discount</strong></p>
<p>After consulting with the Reserve Bank, the Indian government has agreed to provide investors who apply online and pay for their applications electronically a discount of Rs 50 per gramme below the nominal amount.</p>
<p>The RBI said that the issuance price of the Gold Bond for these investors will be Rs 6,213.</p>
<p>The Know Your Customer (KYC) guidelines will be the same as when buying real gold.</p>
<p><strong>How Is the Price of a Sovereign Gold Bond Determined?</strong></p>
<p>The simple average closing price of 999-purity gold, as reported by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week before the subscription period, is the basis for fixing the price of SGB in Indian rupees.</p>
<p><strong>Bond Interest Rate for Sovereign Gold</strong></p>
<p>The set yearly compensation rate for investors is 2.50%, which is paid semi-annually based on the nominal value.</p>
<p><strong>The Sovereign Gold Bond Scheme’s Maximum Limit</strong></p>
<p>The highest subscription amount each fiscal year is 4 kg for persons, 4 kg for HUF, and 20 kg for trusts and comparable businesses.</p>
<p><strong>Tenure of Sovereign Gold Bonds</strong></p>
<p>The SGB will have an eight-year term, with the option to redeem early after the fifth year, to be used on the day interest is due.</p>
<p>Loans may be made with the bonds serving as collateral.</p>
<p><strong>The Sovereign Gold Bond Scheme’s Objective</strong></p>
<p>In order to decrease the demand for physical gold and convert a portion of domestic funds that were previously used to buy gold into financial savings, the sovereign gold bond program was introduced in November 2015.</p>