InvestorQ : Is it true that the government is planning to issue sovereign gold bonds 2020-21 and where can I buy it?
Purvesh made post

Is it true that the government is planning to issue sovereign gold bonds 2020-21 and where can I buy it?

Answer
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ramya Bhaskaran answered.
5 months ago


Yes, the government in consultation with RBI has announced to issue sovereign gold bonds in six tranches from April 2020 to September 2020. The bonds shall be issued by RBI (Reserve Bank of India) on behalf of the government. Basic features of these bonds are as follows:

  1. Only resident individuals, HUFs, trust, Universities, Charitable Societies/Institutions shall be eligible to subscribe to the bonds.
  2. The bonds will be denominated in the multiples of grams of gold with a basic unit of 1 gm.
  3. These binds shall be available with a maturity period 8 years, with an exit option after the 5th year to be exercised on the dates on which interest is to be paid.
  4. The price of the bond will be fixed in Indian Rupees on the basis of a simple average of the closing price of gold of purity 999.
  5. The bonds will be available at a fixed interest rate of 2.5% per annum, payable annually.
  6. Also, the benefit shall be given to those who subscribe online and pay through digital mode.
  7. Bonds shall be sold through Commercial Banks, Stock Holding Corporation of India Limited (SHCIL), such post offices as may be notified by the government for this purpose, National Stock Exchange, Bombay Stock Exchange, either directly or through agents.

Here’s the calendar for issuance of these bonds:

SeriesSubscription DateIssuance Date
IApril 20-24, 2020April 28, 2020
IIMay 11-15, 2020May 19, 2020
IIIJune 08-12, 2020June 16, 2020
IVJuly 06-10, 2020July 14, 2020
VAug 03-07, 2020Aug 11, 2020
VIAug 31-Sept 04, 2020Sept 08, 2020