Sovereign Gold Bond Scheme 2021-22

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Sovereign Gold Bond Scheme 2021-22

The Government of India, in consultation with the Reserve Bank of India, has come out with the Sovereign Gold Bond scheme 2021-22 as per the press release by RBI dated May 12, 2021. The Gold Bonds under Sovereign Gold Bond Scheme 2021-22 will be issued in six tranches from May 2021 to September 2021.

An investor can apply for SGB through Scheduled commercial banks (except SFBs and Payment Banks), Stock Holding Corporation of India Limited, and recognized stock exchanges.

SGBs are government securities denominated in grams of gold which gives an opportunity to investors to invest in gold without physical holding. Investing in these bonds is beneficial as it eliminates the cost and storage risk. 

Follow this link to know the key features of SGB Invest in Gold without Physical Holding and Earn Interest Also- Find out How?

In times of economic uncertainty and financial disturbances during a pandemic, gold has proved to be a safe haven asset in the long term. It not only diversifies the portfolio but also provides a cushion against market fluctuations.

SGB Scheme 2021-22

Below are the forthcoming dates for the issue specified by the RBI.

Tranche
(FY 21-22)
Status Subscription Date Issuance Date Issue Price  Rs per gram Online Issue price Rs per gram
Series  I Closed May 17-21, 2021 May 25, 2021 4777 4727
Series II Closed May 24-28, 2021 June 1, 2021 4842 4792
Series III Open May 31- June 4, 2021 June 8, 2021 4889 4839
Series IV Upcoming July 12-16, 2021 July 20, 2021
Series V Upcoming Aug 9-13, 2021 Aug 17, 2021
Series VI Upcoming Aug 30- Sept 3, 2021

The price on these bonds is fixed on the basis of a simple average closing price of 999 purity gold prices prevailing in the last three business days of the week (rate as published by India Bullion and Jewellers Association, IBJA) preceding the subscription period. The Bonds bear periodic interest payouts @ 2.5% p.a. paid semiannually.

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About CA Priyanka Choudhary Jain 80 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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