Price for Sovereign Gold Bonds Fixed at Rs3443 Per Gram by the Centre (Download PDF)

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The government of India has fixed the new series of Sovereign Gold Bonds at Rs3443 opening on July 8. SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold.

Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.

This is expected to benefit in terms of Commodity exchanges and Capital gains.

This image show in Price for Sovereign Gold Bonds Scheme

This Image Show in Price for Sovereign Gold Bonds Scheme

This image show in Price for Sovereign Gold Bonds Scheme

Scheme Overview

  • The RBI on 30th may 2019 announced calendar for issuance of SGB for first half of current financial year (2019 - 20).

  • The Centre in consultation with the Reserve Bank of India decided to allow a discount of Rs50 per gram.

  • This discount is only for the investors who apply online. Also the payment should be made via digital mode.

  • The issue price of gold bond would be Rs3393per gram of gold.

  • The Sovereign Gold Bonds will be issued every month from June 2019 to September 2019.

Sovereign Gold Bond Scheme

  • Launched in November 2015 by the Government of India.

  • The aim was to reduce the demand for physical gold and shifting a part of domestic savings used for purchase of gold into financial savings.

  • There is an annual ceiling during the initial issuance by centre and those purchased from the secondary market.

  • The minimum investment in bonds in 1 gram and a maximum limit of subscription of 500gm per person per fiscal year (April-March).

  • The maximum subscription is 4kg for individual and Hindu Undivided Family (HUF) including 20kg maximum subscription limit for trusts and similar entities per fiscal (April March).

  • It can be used as a collateral for Loans.

  • There is a zero risk of handling actual gold.

- Published/Last Modified on: August 16, 2019

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