Sovereign Gold Bond Scheme 202223,
First tranche to open for subscription on June 20,
Issue price at Rs. 5091 per gram
( Our Guidance at the bottom of the page)
Government of India, vide its Notification No F.No4.(6)-B (W&M)/2022 dated June 15, 2022, has announced Series I and II of Sovereign Gold Bond Scheme 2022-23. Under the Scheme, there will be a distinct series (Series I and II) for every tranche. The terms and conditions of the issuance of the Bonds shall be as per the above notification.
2. Date of Issue
The bonds shall be issued as per the details given below:
Sr. No. Tranche Subscription Period Date of Issuance
1. 2022-23 Series I June 20-24, 2022 June 28, 2022
2. 2022-23 Series II August 22-26, 2022 August 30, 2022
3. Period of subscription
The Subscription of the Gold Bonds under this Scheme shall be open (Monday to Friday) on the dates specified above, provided that the Central Government may, with prior notice, close the Scheme at any time before the period specified above.
Issuer : The central bank issues the bonds on behalf of the Government of India,
Who Can Apply ? These bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.
The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable,” the RBI said, and added, minimum permissible investment will be one gram of gold. The maximum limit of subscription is 4 Kg for individuals, 4 Kg for HUFs and 20 Kg for trusts and similar entities per fiscal year.
4. How to Apply ?
Subscription for the Bonds may be made in the prescribed application form Form A or in any other form as near as thereto, stating clearly the grams (in units) of gold and the full name and address of the applicant. Every application must be accompanied by valid ‘PAN details’ issued by the Income Tax Department to the investor(s). Designated Scheduled Banks, designated Post Offices, Stock Holding Corporation of India Ltd, Clearing Corporation of India Ltd and recognized stock exchanges, viz. National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd are the Receiving Offices which are authorized to receive applications for the Bonds either directly or through agents and render all services to the customers. The Receiving Office shall issue an acknowledgment receipt in Form B to the applicant.
5. Online Application : All online applications should be accompanied by email Id of the investor/s which should be uploaded on the Ekuber portal of Reserve Bank of India along with the subscription details.
Gold Bond Issue Price :
The RBI further said the price of SGB will be fixed in rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period.Now the RBI has announced issue price of Rrs. 5091 per gram of Gold.
Benifit for the online Investor : The issue price of the SGBs will be less by Rs 50 per gram for the investors who subscribe online and pay through digital mode.
SGB Interest Rate ,Compensation : The investors will be compensated at a fixed rate of 2.5 per cent per annum payable semi-annually on the nominal value,” the central bank said.
The SGBs are sold through banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), post offices and the two stock exchanges (NSE and BSE).
The sovereign gold bond scheme was launched in November 2015, with an objective to reduce the demand for physical gold and shift a part of the domestic savings — used for the purchase of gold — into financial savings.In 2021-22, SGBs were issued in 10 tranches for an aggregate amount of Rs 12,991 crore (27 tonnes).
Guidance : In the short term, due to interst-rate hike by US Federal Reserve and the Central Banks of the other countries , the price of Gold & Silver are expected to show declining trend. The investors who have invested in the above SGB 222223 may find the value of their investment, declining in the near future. However in the long term ,the price of Gold may move up strongly due to fast rising rate of inflation. So after initial hiccups , there are all chances that the value of investment in SGB 222223 may move up sharply and by the time of its tenure , it can offer good returns.
Click to study : RBI Notification
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