Finance
By: Shree1news, 28 FEB 2021
The 12th and last series of the government- run sovereign gold bond (SGB) scheme 2020-21 will open for subscription on Monday for a period of 5 days. The subscription will close on March 5. Each gold bond (equivalent to one gram of gold) is priced at ₹4,662 under the 12th tranche, based on the Reserve Bank of India (RBI). In response to the central bank, a discount of ₹50 per unit is relevant for all those investing in the gold bonds online. For such investors, the issue price of the gold price will be ₹4,612 per gram of gold.
Everything you should know about the government-run Sovereign Gold Bond scheme:
Who can buy the bonds?
Resident individuals, Hindu Undivided Families (HUFs), trusts, universities as well as charitable institutions can put in their funds in gold bonds, subject to investment limits.
What is the tenor of the bond?
The tenor of the bond is for a period of 8 years with an exit option after the 5th year to be exercised on the next interest payment dates.
Where can you buy the bonds from?
Eligible entities can purchase the gold bonds from the designated post offices, stock exchanges BSE and NSE, as well as the Stock Holding Corporation.
What’s the investment limit on the bonds?
The minimal permissible investment will be 1 gram of gold. The maximum limit of subscription shall be 4kg for individuals, 4kg for HUF and 20kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. In the case of joint holding, the investment limit of 4kg will be applied to the first applicant only.
What KYC documentation is needed to buy the bonds?
KYC documents such as Voter ID, Aadhaar PAN or TAN cards and passport will be required. Each application should be accompanied by the ‘PAN Number’ issued by the income tax department to people and other entities.
Source:A-N
