The Government of India has decided to issue Sovereign Gold Bonds 2022-23 Series II As per the Schedule for 2022-23. Sovereign Gold Bond (SGB) Scheme introduced by the Government of India in consultation with the Reserve Bank of India, to offer investors an alternative to physical gold. Over the years, the market has witnessed a considerable decline in the demand for physical gold. SGB not only tracks the export-import value of the asset but also ensures transparency at the same time. SGBs are government securities and are considered safe. Their value is denominated in multiples of grams of gold. SGBs have witnessed a significant increase in investors, with it being considered a substitute for physical gold. Gold Sovereign Bonds are new-age investment vehicles for those interested in diversifying the portfolio with gold holdings.
The Sovereign Gold Bond Scheme 2022-23 - Series II will be open for subscription for the period from August 22 – August 26, 2022
The nominal value of the bond based on the simple average closing price published by IBJA for gold of 999 purity of the last three working days of the week preceding the subscription period, i.e. August 17, August 18, and August 19, 2022 works out to ₹5,197/- per gram of gold.
Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be ₹5,147/- The SGB maturity period is 8 years. However, users can make premature redemption after the fifth year on the date on which interest is payable. On redemption, the price paid to the customer is the simple average of the closing price of gold of 999 purity, of the previous three working days published by IBJA Ltd.