Sovereign Gold Bond Scheme: Issue Price Fixed At Rs 5,926/Gm; Subscription Opens On Monday

In a move aimed at attracting investors and promoting gold as an investment option, the government has fixed the issue price of the Sovereign Gold Bond (SGB) Scheme at Rs 5,926 per gram. The subscription for the new series of gold bonds will open on Monday, providing individuals with another opportunity to invest in gold.
The SGB Scheme, which was launched by the Government of India, offers investors a secure and cost-effective alternative to owning physical gold. The bonds are denominated in grams of gold and are issued by the Reserve Bank of India (RBI) on behalf of the government. The scheme provides an opportunity for individuals to earn interest on their investment while also benefiting from any appreciation in the price of gold.Source:- ET
The issue price for the current series of the SGB Scheme has been fixed at Rs 5,926 per gram, taking into account the average closing price of gold in the preceding three business days before the subscription period. The price is lower than the prevailing market rates, making it an attractive option for investors looking to add gold to their investment portfolio.
The subscription for the new series of Sovereign Gold Bonds will be open from Monday, giving individuals a chance to invest in gold without the need to hold physical gold. The bonds come with a maturity period of eight years, with an option to exit after the fifth year. Investors will also receive a fixed interest rate of 2.50% per annum, payable semi-annually on the nominal value of the bonds.
The SGB Scheme offers several advantages over traditional gold investments. The bonds can be traded on the stock exchanges, providing liquidity to investors who may want to exit their investment before the maturity period. Additionally, the bonds are free from issues related to storage and security associated with physical gold. Furthermore, the interest earned on these bonds is taxable, but the capital gains arising on redemption are exempt from tax.
The SGB Scheme has gained popularity among investors in recent years, with several successful tranches attracting significant subscription amounts. The government’s efforts to promote the scheme have resulted in increased awareness and participation. By fixing the issue price at an attractive level, the government aims to encourage more individuals to invest in gold bonds and diversify their investment portfolios.
Investors interested in participating in the Sovereign Gold Bond Scheme can apply through scheduled commercial banks, the Stock Holding Corporation of India (SHCIL), designated post offices, and the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) trading platforms.
With the subscription for the new series of the Sovereign Gold Bond Scheme set to open on Monday, investors are expected to seize the opportunity to invest in gold and take advantage of the various benefits offered by the scheme.
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