Mumbai, August 3: The fifth tranche of Sovereign Gold Bond (SGB) Scheme 2020-21 opened on Monday and the issue price has been fixed at Rs 5,334 per gram. The Sovereign Gold Bond Scheme 2020-21-Series V remains open till August 7, which is till this Friday.

The issue price for Sovereign Gold Bond Scheme series IV, which were open for subscription from July 6 to July 10, was Rs 4,852 per gram of gold. This offering comes at a time when gold price has surged about 37 percent this year and prices have inched closer to around Rs 54,000 per 10 gram. Sovereign Gold Bond Scheme 4th Instalment Opens Today, RBI Fixes Price at Rs 4,852 Per Gram; Know All About The Scheme.

The Sovereign Gold Bonds will be issued in six tranches. The September tranche of gold bonds (Sovereign Gold Bond Scheme 2020-21-Series VI) will open from August 31, 2020, till September 04, 2020.

Here how to apply and all you need to know about the latest gold bond scheme:

    • Those applying online and making payment online will get a discount of Rs 50 per gram. For such investors, the issue price of the gold bond will be Rs 5,284 per gram of gold.

    • The issuance date of this latest tranche of gold bonds will be August 11, 2020

    • The tenor of the gold bonds is eight years with exit option after the fifth year.

    • If the gold bond is held in Demat form, it can be traded on exchanges, offering an exit route before five years.

    • The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.

    • Payment for the Bonds will be through cash payment (upto a maximum of ` Rs 20,000) or demand draft or cheque or electronic banking.

The bonds will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices (as may be notified) and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents.

(The above story first appeared on LatestLY on Aug 03, 2020 12:31 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).