The price of the Sovereign Gold Bond was set at Rs 6,263 per gram, and the points will open on Monday

The price of the Sovereign Gold Bond was set at Rs 6,263 per gram, and the points will open on Monday

The Reserve Bank reports that the next round of Sovereign Gold Bonds, which are priced at Rs 6,263 per gram, would go on sale on Monday and last for five days.

The RBI said in a statement on Friday that the next tranche of sovereign gold bonds, which will be priced at Rs 6,263 per gram, will open on Monday.

The Reserve Bank stated in a statement on Friday that the issue price of the next tranche of Sovereign Gold Bond, which will be available for subscription for five days starting on Monday, has been set at Rs 6,263 per gram.

Subscriptions for the Sovereign Gold Bond Scheme 2023–24 – Series IV will be accepted from February 12–16, 2024.

The central bank said, "The nominal value of the bond works out to Rs 6,263 per gramme of gold."

After consulting with the Reserve Bank, the Indian government has agreed to provide investors who apply online and pay for their applications electronically a refund of Rs. 50 per gramme less than the face value.

According to RBI, these investors would pay Rs 6,213 for the gold bonds that are being issued.

SGBs will be offered for sale through designated post offices, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), Bombay Stock Exchange Limited, National Stock Exchange of India Limited, as well as scheduled commercial banks (apart from small finance, payments, and regional rural banks).

The price of SGB is set in Indian Rupees using the simple average of the closing 999-purity gold prices for the last three working days of the week before the subscription period, as reported by the India Bullion and Jewelers Association Limited (IBJA).

A set yearly percentage of 2.50% is paid to investors semi-annually based on nominal value.

For each fiscal year, the maximum subscription amount is 4 kilogram for persons, 4 kg for HUF, and 20 kg for trusts and other companies.

The SGB will have an eight-year term, with the option to redeem early after the fifth year, executed on the day interest is due.

On behalf of the Indian government, bonds are issued by the Reserve Bank of India.

Bonds are a suitable kind of collateral for loans.

The Know Your Customer (KYC) guidelines will apply just as when buying real gold.

In order to decrease the need for physical gold and convert a portion of family savings into financial savings used to buy gold, the Sovereign Gold Bond Scheme was introduced in November 2015.