Subscription for Sovereign Gold Bond Series IV Opens Today, Here’s How to Invest

The fourth installment of the government-run Sovereign Gold Bond (SGB) scheme, issued by the Reserve Bank of India, will open for subscription from Monday (July 6). The window to invest in gold will be open for a period of five days, concluding on July 10. The next window will open in August, followed by another window in September.

For the fourth tranche of the SGB scheme, the issue price has been decided at Rs 4,852 per gram of gold. This price for the issue of gold bonds is fixed depending on the recent closing price of gold of 99.9 percent purity stated by the India Bullion and Jewellers Association Ltd. The online buyers can avail a discount of Rs 50 per gram.

A person or organisation can invest in a minimum amount of one gram of gold. The bonds will be issued on July 14 and will become tradeable on stock exchanges within a fortnight of the issuance on a date.

One can draw the interest at the rate of 2.5 per cent per annum for investing in the SGB scheme. The interest is payable on a semi-annual basis. It is to be noted that the tenor of the Sovereign Gold Bond will be eight years. Buyers can also avail the exit option after fifth year.

One can buy the SGBs through various methods, including banks (excluding small finance banks and payment banks), selected post offices, Stock Holding Corporation of India, NSE and BSE.