Gold and Silver Updates


The problem value for the following sequence of sovereign gold bonds has been fastened at 5,000 per gram of gold, authorities stated on Saturday.

The Sovereign Gold Bond Scheme 2020-21 – Sequence IX can be open for subscription from December 28, 2020 to January 1, 2021.

“By way of Authorities of India Notification No.4(4)-B(W&M)/2020 dated October 09, 2020, Sovereign Gold Bonds 2020-21 (Sequence IX) can be opened for the interval December 28, 2020 – January 01, 2021 with Settlement date January 05, 2021. The problem value of the Bond in the course of the subscription interval shall be 5,000 (Rupees 5 thousand solely) – per gram, as additionally revealed by RBI of their Press Launch dated December 24, 2020,” stated Ministry of Finance in a press release.

The worth of the bond is predicated on the easy common closing value (revealed by the India Bullion and Jewellers Affiliation Ltd) for gold of 999 purity of the final three enterprise days of the week previous the subscription interval, that’s, 22-24 December.

Authorities of India in session with the Reserve Financial institution of India has determined to permit low cost of 50 (Rupees Fifty solely) per gram from the problem value to these traders who apply on-line and the cost is made by means of digital mode. For such traders the problem value of Gold Bond can be 4,950 per gram of gold.

The problem value for Sequence VIII of gold bonds, that was open for subscription from November 9 to 13, 2020, was 5,177 per gram of gold.

Sovereign Gold Bond 2020-21 is issued by the Reserve Financial institution India on behalf of the Authorities of India.

The bonds are denominated in multiples of gram(s) of gold with a fundamental unit of 1 gram and its tenor is eight years with exit choice after fifth yr to be exercised on curiosity cost dates.

The bonds are restricted on the market to resident people, Hindu Undivided Households (HUFs), trusts, universities and charitable establishments.

The minimal permissible funding can be 1 gram of gold and the utmost restrict of subscription shall be 4 kg for people and HUFs, and 20 kg for trusts and comparable entities per fiscal (April-March).

The gold bonds can be offered by means of banks (besides Small Finance Banks and Cost Banks), Inventory Holding Company of India (SHCIL), designated put up places of work, and recognised inventory exchanges (NSE and BSE).

The sovereign gold bond scheme was launched in November 2015 with an goal to cut back the demand for bodily gold and shift part of home financial savings — used for buy of gold — into monetary financial savings.

As per RBI’s Annual Report 2019-20, a complete of 9,652.78 crore (30.98 tonnes) has been raised by means of the sovereign gold bond scheme (37 tranches) since its inception in November 2015.

The RBI issued 10 tranches of sovereign gold bonds for an combination quantity of 2,316.37 crore (6.13 tonnes) throughout 2019-20.

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