17-Jun-2023
2 mins read
The Government of India has just announced the issue price for the first tranche of Sovereign Gold Bonds for the fiscal year 2023-24.
The Ministry of Finance has recently released a statement outlining the details for the highly anticipated Sovereign Gold Bond Scheme 2023-24. Here are the details
| Tranche | Date of Subscription | Date of Issuance |
| 2023-24 Series I | June 19 – June 23, 2023 | June 27, 2023 |
| 2023-24 Series II | Sep 11-Sep 15, 2023 | Sep 20, 2023 |
Unravelling the Pricing Details
The bond’s issue price during the subscription period has been fixed at Rs 5,926 per gram of gold. This information was also confirmed in a press release by the Reserve Bank of India (RBI) dated June 16, 2023.
Who Can Participate and Where?
Investors can participate in the Sovereign Gold Bond Scheme through various channels. These include Scheduled Commercial Banks (excluding Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), certain designated post offices, and recognised stock exchanges like the National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
Discount for Digital Mode
In an initiative to promote online transactions, the Government of India and RBI are providing a discount of Rs 50 per gram for investors who apply online and make payments through digital mode. This makes the effective issue price for these investors Rs 5,876 per gram of gold.
Pricing Mechanism
The pricing of the SGB will be decided based on the simple average of the closing price of gold of 999 purity, as published by the India Bullion and Jewellers Association Limited (IBJA), over the last three working days of the week preceding the subscription period.
Bond Specifics
These bonds will be issued in multiples of gram(s) of gold, with a basic unit being 1 gram. They have a tenor of 8 years, with an exit option available after the 5th year, which can be exercised on subsequent interest payment dates.
The minimum permissible investment is 1 gram of gold, while the maximum limit is 4 kilograms for individuals, 4 kg for Hindu Undivided Families (HUF), and 20 kg for trusts and similar entities per fiscal year (April-March).
In summary, this new announcement for the Sovereign Gold Bond Scheme offers an excellent opportunity for investors to participate in a secure form of investment, potentially earning a good return while enjoying the stability of gold as an asset class.