Sovereign Gold Bonds Series 9- How To Invest

The ninth tranche of the Sovereign Gold Bond Scheme (SGB) 2021-22 will be available for subscription from January 10, 2022, for a five-day period ending on January 14, 2022. These bonds are issued on behalf of the Union government by the Reserve Bank of India. The price of the issuance has been set at Rs 4,786 per gram.

Here's all you need to know about the programme:

Discount and nominal value

While the issue price, or nominal value, of gold has been set at Rs 4,786 per gram, the RBI will grant a discount of Rs 50 per gram less than the nominal value to those investors who register online and pay for their application using digital means. The issuance price of a gold bond for such investors will be Rs 4,736 per gram of gold.

Mechanism of pricing

The price of the bond is determined in Indian rupees using a simple average of the past three working days of the week preceding the subscription period, as announced by the India Bullion and Jewellers Association.

Lock-in

The bonds are denominated in gram(s) of gold multiples, with one gram as the fundamental unit. The bond will have an 8-year tenor, with an exit option after the fifth year that can be utilized on the next interest payment dates.

Limits, both minimum and maximum

One gram of gold is the minimum amount that can be invested. Individuals have a maximum subscription limit of 4 kg, HUFs have a maximum subscription limit of 4 kg, while trusts and similar companies have a maximum subscription limit of 20 kg every fiscal year (April-March).

How to Purchase

Stock Holding Corporation of India Limited (SHCIL), approved post offices, and recognised stock exchanges — NSE and BSE — will sell the bonds.

KYC

The know-your-customer (KYC) requirements will be the same as for actual gold purchases. The plan was started in November 2015 with the goal of reducing physical gold demand and directing a portion of domestic resources formerly used for gold purchases towards financial savings.