Issue price of Sovereign Gold Bond fixed at Rs 4,791 per gram
RBI imposes Rs 1 crore penalty on SBI for compliance deficiencies
New Delhi, Nov 26 (UNI) The issue price for the 8th tranche of the Sovereign Gold Bond Scheme 2021-22 has been fixed at Rs 4,791 per gram.
“The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode,” Finance Ministry said in a statement.
Accordingly, the issue price for these investors will be Rs 4,741per gram of gold.
The Sovereign Gold Bonds 2021-22 (Series VIII) will be opened for subscription during the period November 29- December 03, 2021 with Settlement date December 07, 2021.
According to Millwood Kane International, the Sovereign Gold Bond is an effective way of taking exposure to gold.
It is a favored route for the government to convert all gold investments into a digital mode as it will help keep the deficit under control and provide support to the currency.
The government has raised over Rs 31,000 crore of funds via the scheme.
“After hitting a 9-month high earlier in the month, gold prices were trading in a narrow range for the past few sessions. The fears surrounding the new variant of virus has raised fresh concerns, leading to a softness in US dollar, pushing gold prices higher,” said Nish Bhatt, Founder & CEO, Millwood Kane.