Government Rolls Out Sixth Tranche Of Gold Bonds; Issue Price At Rs 3,835 Per Gram
The government rolled out the sixth tranche of sovereign gold bonds to cash in on Dhanteras buying spree.
The Sovereign Gold Bond Scheme 2019-20 - Series VI will close for subscription on the day of Dhanteras that is Oct. 25.
According to a finance ministry statement, the government has fixed the issue price at Rs 3,835 per gram with settlement date as Oct. 30. Further, the government has decided to offer a discount of Rs 50 per gram for investors applying online and making payment for the purchase of the bond through digital mode.
"For such investors, the issue price of gold bond will be Rs 3,785 per gram of gold," the finance ministry said.
In view of the ongoing festive season, which ends with Diwali later this month, the government issued the previous Series V of the SGB scheme earlier this month.
The sovereign gold bond scheme was launched in November 2015 with an objective of reducing demand for physical gold and shifting a part of domestic savings, used for purchase of the yellow metal, into financial savings. Under the scheme, bonds are denominated in units of one gram of gold and multiples thereof. The minimum investment in the bonds is one gram with a maximum limit of subscription of 500 gram per person per fiscal year (April-March).
The maximum limit of subscription is 4 kg for Hindu Undivided Family and 20 kg for trusts and similar entities per fiscal.