This is the sixth and last tranche of the scheme for the year ending March 2021
The government’s Sovereign Gold Bond programme are set to open for the final five days this financial year. The gold bonds will be available for subscription from 10 am to 5 pm from Monday, August 31 to Friday, September 4. This is the sixth and last tranche of the scheme for the year ending March 2021. The Reserve Bank of India on Friday announced an issue price of Rs 5,117 per unit for the sixth series of Sovereign Gold Bonds 2020-21.
How Is Gold Bond Issue Price Calculated
The issue price is arrived at using a simple average of the last three trading sessions before the launch of each tranche. Spot gold rates provided by Mumbai-based India Bullion and Jewellers Association (IBJA) are used to calculate the issue price for each series of the SGB scheme.
Bids for the gold bond programme will be settled on September 8, the central bank said.
The issue price of Rs 5,117 per gram, for example, is based on the closing prices of gold jewellery from August 26 to 28 provided by industry body IBJA.
Spot Gold Rates Of Past Three Days
For the fifth tranche of the SGB programme for the current financial year, which opened for subscription from August 3 to August 7, an issue price of Rs 5,334 per unit was applicable.
The government and the RBI will offer a discount of Rs 50 per gram to investors applying online using a digital mode of payment. Therefore, the issue price for such investors will be Rs 5,067 per unit.
The Reserve Bank of India issues bonds linked to the market price of gold on behalf of Government of India under the Sovereign Gold Bond (SGB) bond programme. Each unit of the gold bond scheme is equivalent to one gram of gold.
