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Gold bond concern value mounted at Rs 5,051 per gram

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Mumbai: The concern value for the sovereign gold bond has been mounted at Rs 5,051 per gram of gold, the Reserve Bank of India (RBI) stated in a press release on Friday.

The Sovereign Gold Bond Scheme 2020-21-Series VII can be opened for subscription from October 12 to October 16.

“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 5,051 per gram of gold,” the RBI stated.

It additional stated the federal government, in session with the RBI, has determined to supply a reduction of Rs 50 per gram lower than the nominal worth to these traders making use of on-line and the fee towards the appliance is made via digital mode.

“For such investors, the issue price of gold bond will be Rs 5,001 per gram of gold,” the central financial institution stated.

The concern value for the bonds (Series VI), which had been open for subscription from August 31 to September 4, was Rs 5,117 per gram of gold.

The Sovereign Gold Bond Scheme (SGB) 2020-21 Series VIII will open for subscription throughout November 9 to November 13. The concern value can be introduced few days earlier than the subscription opens.

Sovereign Gold Bond 2020-21 is issued by the RBI on behalf of the Government of India.

The bonds are denominated in multiples of grams of gold with a primary unit of 1 gram and the tenure of the SGB can be eight years with exit possibility after fifth yr to be exercised on the curiosity fee dates.

The bonds are restricted on the market to resident people, Hindu Undivided Families (HUFs), trusts, universities and charitable establishments.

The minimal permissible funding can be 1 gram of gold and the utmost restrict of subscription shall be Four kg for particular person, Four kg for HUF and 20 kg for trusts and comparable entities per fiscal (April-March).

The gold bond can be offered via banks (besides small finance banks and fee banks), Stock Holding Corporation of India (SHCIL), designated put up workplaces, and recognised inventory exchanges (NSE and BSE).

The sovereign gold bond scheme was launched in November 2015 with an goal to scale back the demand for bodily gold and shift part of the home financial savings — used for the acquisition of gold — into monetary financial savings.

According to the RBI Annual Report 2019-20, a complete of Rs 9,652.78 crore (30.98 tonnes) has been raised via the sovereign gold bonds scheme (37 tranches) since its inception in November 2015. The RBI issued 10 tranches of sovereign gold bonds for an combination quantity of Rs 2,316.37 crore (6.13 tonnes) throughout 2019-20.

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