Sovereign Gold Bond Scheme Opens for Subscription Today, RBI Fixes Price of Yellow Metal at 4,590 Per Gram, Here Are All Details
The RBI is all set open the second tranche of government-run Sovereign Gold Bond (SGB) scheme of FY 2019-20 for subscription today. The Series II of SGB scheme 2020-21 will close for subscription on May 15. The RBI has set the issue price of the latest gold bond scheme at Rs 4,590 per gram, adding that the issue date is May 19.
Mumbai, May 11: The Reserve Bank of India is all set open the second tranche of government-run Sovereign Gold Bond (SGB) scheme of FY 2019-20 for subscription today. The Series II of sovereign gold bond scheme 2020-21 will close for subscription on May 15. The RBI has set the issue price of the latest gold bond scheme at Rs 4,590 per gram, adding that the issue date is May 19.
Among other details, RBI had said that those applying online and making payment through digital mode will get a discount of Rs 50 per gram. Adding on, these investors will get an additional discount of Rs 50, and would be able to buy SGB at Rs 4,540 per gram of gold. It is to be known that Sovereign Gold Bond (SGB) are issued by the Reserve Bank of India (RBI) on behalf of the government. Sovereign Gold Bond Scheme Opened For Subscription For Fy 2020-21 Today; Know Details of SGB
Earlier in April, the RBI issued first tranche of SGB of FY-20 at 4,639. RBI data says that he first tranche of SGB for FY20 saw a record subscription of 17.73 lakh units worth Rs 822 crore. This was the highest ever subscription since the issue in October 2016. In October 2015, the first issue of the sovereign gold bond scheme came and people bought 9.14 lakh units worth Rs 245 crore. However, the investors bought 35.98 lakh units of gold bonds worth Rs 1,081 crore, when RBI released SGB in October 2016.
Interestingly, the latest SGB scheme comes at a time when gold is attracting strong investment demand. Also, Gold holdings with SPDR ETF have risen to to multi-year highs of 1075.8 tonnes. Looking at the price of gold, the price of yellow metal are up about 40 percent. Experts define the rise in price due to the coronavirus-related lockdowns and widespread stimulus from central banks.
Recently, RBI released the timeline of issuance of gold bonds for the first six months of the year. Here is the timeline of gold bond that will be issued for next four months:
| Tranche | Date of Subscription | Date of Subscription/Issuance |
| 2020-21 | Series III | June 08-12, 2020/June 16, 2020 |
| 2020-21 | Series IV | July 06-10, 2020/July 14, 2020 |
| 2020-21 | Series V | August 03-07, 2020/August 11, 2020 |
| 2020-21 | Series VI | Aug. 31-Sept. 04, 2020 /September 08, 2020 |
(The above story first appeared on LatestLY on May 11, 2020 01:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).