Mumbai, November 9: The eighth series of Sovereign Gold Bond Scheme 2020-21 opened for subscription today. Ahead of Dhanteras and Diwali 2020, the government and the Reserve Bank of India (RBI) decided to offer a discount of Rs 50 per gram to those applying and paying for the scheme online.  The scheme will close on November 13.

The issue price of the scheme has been fixed at Rs 5,177 per gram and Rs 5,127 per gram for those applying online. The Sovereign Gold Bond is issued by RBI on behalf of the Government of India. Sovereign gold bonds are government securities denominated in grams of gold. They are substitutes for holding physical gold. Sovereign Gold Bonds Open For Subscription Today: Here's How to Apply And All You Need to Know About SGB Scheme 2020-21 Series VII.

Here are a few things which you need to know before you apply for SGB Scheme 2020-21 Series VIII: 

  • Documents that are required for applying these bonds are Voter ID, Aadhaar card/PAN, or TAN /Passport.

  • 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.

  • Gold bonds have a maturity period of eight years but investors will have the option to exit after the fifth year. However, if an investor is eyeing an exit before the lock-in period of 5 years, they can always get out of the bonds by selling it on stock exchanges.

  • SGBs are issued by the Reserve Bank of India Unlike in physical gold, GST is not levied on SGBs. The tenor of the gold bonds is eight years with exit option after the fifth year.

The issue price for the bonds (Series VII), which were open for subscription from October 12-16, was fixed at Rs 5,051 per gram of gold.

(The above story first appeared on LatestLY on Nov 09, 2020 12:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).