85 breached
The Indian rupee has breached the significant psychological barrier of 85 against the US dollar, marking an all-time low amid a confluence of domestic and global pressures.
The government has decided to issue the bonds in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India.
Sovereign gold bond issue for second tranche has been fixed at Rs 4,842 per gram, the Reserve Bank of India said on Friday.
The Sovereign Gold Bond Scheme 2021-22 – Series II or the second tranche will be open for subscription from May 24 to 28.
Advertisement
The government has decided to issue the bonds in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India.
Advertisement
“The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period… works out to Rs 4,842 per gram of gold,” the RBI said in a statement.
The government in consultation with the RBI 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.
“For such investors, the issue price of gold bond will be Rs 4,792 per gram of gold,” it said.
The bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and National Stock Exchange and BSE.
The price of the bond is fixed in Indian rupees on the basis of simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Ltd for the last three working days of the week preceding the subscription period.
The bonds will be denominated in multiples of gram (s) of gold with a basic unit of 1 gram. The tenor of the bond will be for 8 years with an exit option after the 5th year to be exercised on the next interest payment dates.
Minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kilograms for individual, 4 kilograms for HUF and 20 kilograms for trusts and similar entities per fiscal (April-March).
Know Your Customer (KYC) norms will be the same as that for purchase of physical gold.
The scheme was launched in November 2015 with an objective to reduce the demand for physical gold.
Advertisement