Sovereign gold bond scheme: Subscription for 6th tranche closes on Dhanteras

The sixth tranche of the sovereign gold bond (SGB) scheme 2019-20 opened for subscription on October 21. The Reserve Bank of India has fixed the issue price of the bond at Rs 3,835 per gram.  The sovereign gold bonds are government securities denominated in grams of gold and they are issued by the RBI. Here is all you need to know about the Sovereign Gold Bond Scheme 2019-20—Series VI.

The subscription for the sovereign gold will close on Dhanteras, October 25

* The RBI has fixed the issue price of the bond at Rs 3,835 per gram.

* The government offers a discount of Rs 50 per gram for investors applying online and making payment through digital mode. For such investors, the issue price will be Rs 3,785 per gram.

* Gold December futures traded lower by Rs 35, or 0.09 percent, at Rs 38,855 per 10 gm in 2,142 lots. Global gold prices were down 0.03 percent at $1,487.70 an ounce in New York.

* The minimum investment in bonds is one gram with a maximum limit of subscription of 500 gram per person per fiscal year (April-March).

* The maximum limit of subscription is 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities per fiscal.

* The government launched the sovereign gold bond scheme in November 2015 with an objective of reducing demand for physical gold and shifting a part of domestic savings into financial savings.