The 12th and latest tranche of Sovereign Gold Bonds (SGB) will be open for subscription from Monday, March 1, 2021, for a period of five days till Friday, March 5, 2021. According to the Reserve Bank of India (RBI), under the 12th tranche, each gold bond is priced at Rs 4,662. This is to note that a single gold bond is equivalent to one gram of gold. Starting from October 2020, the gold bonds were issued in a series of six tranches and this is the 12th instalment of the scheme.
Investors who want to invest in the government-run Sovereign Gold Bond scheme can go through the following details:
A discount of Rs 50 per unit is applicable for everyone who wants to invest in the gold bonds online and the payment is made through digital mode, as per the RBI. The issue price of the gold will be Rs 4,612 per gram for such investors.
Who is eligible to invest?
Resident individuals, Hindu Undivided Families (HUFs), trusts, charitable institutions, and universities are eligible to invest in the government's gold bond scheme. Also, the individual investors with subsequent change in residential status from resident to non-resident can continue to hold SGB till the early redemption or maturity, according to the central bank.
How to invest?
You can invest in the bonds via commercial banks, the Stock Holding Corporation, designated post offices, and the stock exchanges BSE and NSE.
Tenor of the bond
A period of 8 years has been fixed as the tenor of the bond, with an exit option after the 5th year.
Investment limit on the bonds
One gram of gold is the minimum permissible investment, while the maximum limit of subscription shall be 4 kg for individuals, 4 kg for HUF and 20kg for trusts and similar entities per fiscal (April-March). However, one needs to note that in case of joint holding, the investment limit of 4 kg will be applied to the first applicant only.
2.50 percent per annum has been fixed as the interest on the bonds. It will be credited semi-annually to the bank account of the investor, while the last interest will be given on maturity along with the principal.
Documents like Voter ID, Aadhaar PAN or TAN cards and passport will be required for investing in the gold bond.