Sovereign Gold Bond program opens for subscription on Monday: know why to subscribe

New Delhi: The issue price of the next tranche of the Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from Monday, has been set at Rs 4,786 per gram, the Reserve Bank of India announced on Friday ( RBI).

Sovereign Gold Bond Scheme 2021-22 – Series XI will be open for five days for subscription from January 10 to January 14, 2022. RBI said the face value of the bond is Rs 4,791 per gram of gold. The settlement date will be January 18, 2021.

“In terms of Indian Government Notification No. 4 (5) -B (W&M) / 2021 dated October 21, 2021, the 2021-22 Gold Sovereign Bonds (Series IX) will be open for subscription during the period from January 10 to 14, 2022 with settlement date January 18, 2022 ”, we read in the official press release from the Ministry of Finance.

The government, in consultation with the RBI, has decided to allow a rebate of Rs 50 per gram on the issue price to investors who apply online and payment is done digitally.

For these investors, the issue price of the gold bond will be 4,741 rupees per gram of gold. The issue price for the previous series was Rs 4,761 per gram of gold.

Limit, interest, other benefits

The bonds will be sold through commercial banks (except small financing banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), offices of recognized post and scholarships, namely National Stock Exchange of India. Limited and Bombay Stock Exchange Limited.

The maximum subscription limit will be 4 Kg for individuals, 4 Kg for Hindu United Family and 20 Kg for trusts and similar entities for tax purposes.

The term of the Bond will be 8 years with an exit option after the 5th year to be exercised at the next interest payment dates. SGB ​​investors receive an interest rate of 2.50% per annum payable semi-annually on the face value. The capital gains tax resulting from the purchase of SGB from an individual has been exempted. The indexation benefits will be paid on the long-term capital gains generated by any person during the transfer of the bond.