InvestorQ : Can you tell me about the issue of Sovereign Gold Bonds or SGBs scheduled to open for subscription on 17 May?
Lavanya Subramanian made post

Can you tell me about the issue of Sovereign Gold Bonds or SGBs scheduled to open for subscription on 17 May?

Answer
image
Anamika Sodhani answered.
1 month ago
Follow

The first issue of sovereign gold bonds in FY22 will open for subscription on 17 May and will close for subscription on 21 May. After a long time, the issue price for Sovereign Gold Bond Scheme has been fixed at Rs.4,777 per gram. The allotment of the bonds will be done by 25 May. There will be an additional price discount of Rs.50 per gram to digital applications.

This will be the first tranche of the Sovereign Gold Bond Scheme 2021-22 Series. The gold bonds second and third series will also be issued in July itself. The bonds will be sold through banks, the Stock Holding Corporation of India, designated post offices as well as through the recognised stock exchanges viz. The fourth bond is slated in July.

The tenor of the bond will be for a period of 8 years with exit option at the end of the 5th year. However, the benefit of tax-free capital gains will only be available to the investor if the gold bonds are held till maturity. Such bonds will also pay annual interest of 2.5%. Although the gold bonds was launched in the year 2015, the demand for gold bonds has really taken off in the last on year due to buoyant gold prices.

3 Views