The Reserve Bank of India, in consultation with the Centre, has decided to issue a third tranche of Sovereign Gold Bonds. The bonds will be open for subscription from March 8 to March 14.
The bonds, which will be denominated in multiples of gram(s) of gold with a basic unit of 1 gm, will be sold through banks, Stock Holding Corporation of India, and designated post offices.
Minimum permissible investment will be two units (that is 2 gm of gold).
The maximum amount subscribed by an entity will not be more than 500 gm per person in a fiscal (April-March). A self-declaration to this effect will be obtained.
In case of joint holding, the investment limit of 500 gm will be applied to the first applicant only, the RBI said in a statement. Investors will be issued holding certificates. The bonds are eligible for conversion into demat form.
Price fixingPrice of the bond will be fixed in rupees on the basis of the previous week’s (Monday–Friday) simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association (IBJA).
Investors will be compensated at a fixed rate of 2.75 per cent per annum payable semi-annually on the initial value of investment.
Payment for the bonds will be through cash (up to a maximum of ₹20,000), demand draft, cheque or electronic banking.
The borrowing through issuance of the bond will form part of market borrowing programme of the government.