Saturday, April 13, 2024
Google search engine
HomeBusinessFinanceRBI to issue next tranche of sovereign gold bonds from Dec 19-23

RBI to issue next tranche of sovereign gold bonds from Dec 19-23

[ad_1]






The Reserve Bank will issue two tranches of Sovereign Gold Bonds, which will open for public subscription in December and March.


(SGBs) 2022-23-Series III will open for subscription during December 19-December 23 and 2022-23-Series IV during March 06-10, 2023, the finance ministry said in a statement on Thursday.


These bonds are issued by the Reserve Bank of India (RBI) on behalf of the government.


The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and stock exchanges — NSE and BSE.


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 ministry said.


“The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value,” it said.


The maximum limit of subscription is 4 kilogram for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year.


The bonds can be used as collateral for loans.


“The Loan-To-Value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time,” the finance ministry said.


Price of SGB is fixed in Indian Rupees on the basis of simple average of 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.


Know Your Customer (KYC) norms will be the same as that for purchase of physical gold.


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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


[ad_2]

Source link

RELATED ARTICLES
- Advertisment -
Google search engine

Most Popular

Recent Comments