The Reserve Bank of India (RBI) will be issuing the second instalment of the government-run Sovereign Gold Bond (SGB) scheme 2020-21 from Monday (May 11).
The issue price of the SGB has been fixed at Rs 4,590 a gram. While the subscription is open till May 15, the date of issuance is May 19. Individuals, trusts, charitable organizations, Hindu Undivided Families (HUFs) and universities can invest in the SGBs.
Considered to be the best alternative to gold investment, one unit of the bond is equal to one gram of gold. While individuals and HUFs can invest in minimum 1 gram up to 4 kilogram in one fiscal year. Trusts, universities and charitable bodies are limited to purchase up to 20 kilogram gold in a year.
The sovereign gold bond scheme was brought into force in October 2015 and has been considered to be a safe bet during economic turmoil. Amid the ongoing coronavirus health crisis, investors are looking keen on SGBs yet again.
These bonds have a maturity period of eight years and investors have an exit option after their fifth year. The first issue of SGB scheme in the financial year 2020-2021 was open for subscription from April 20 to 24.
RBI has released the dates of subscription and issuance of the SGBs till September. People can buy the bonds through commercial banks, post offices, stock exchanges BSE and NSE, and the Stock Holding Corporation.