InvestorQ : Are there are any major Sovereign gold bond (SGB) issues coming up in the coming few months and are they worth investing in?
Anamika Sodhani made post

Are there are any major Sovereign gold bond (SGB) issues coming up in the coming few months and are they worth investing in?

Answer
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5 months ago


The Indian government initiated the borrowing process with the launch of sovereign gold bonds in consultation with the Reserve Bank of India in the current financial. However, this time around, the government is going with a complete timetable for the full year rather than doing it on an ad-hoc basis. SGBs will be issued in six tranches by the RBI between April and September, 2020 providing assured interest payment of 2.5% annually to investors. This is over and above any price appreciation that may accrue to the investor. However, currently gold bonds are available for sale only in the domestic market for subscription by individuals, HUFs, Trusts, Universities and charitable institutions. NRIs are barred from investing in SGBs. The SGBs will have a basic unit of 1 gram and in multiples thereof with a tenor of 8 years and exit option after 5 years. The investment ceiling is 4 kg of gold for individuals and HUF per fiscal year. The price will be fixed in Indian rupees on the basis of simple average closing price of gold of (.999 purity) for last 3 working days of the week preceding the subscription period. Online subscription will get Rs.50 discount per gram.