Sovereign Gold Bond Scheme 2021-22: Series 9 issue price
The Government of India (GoI) has announced the date for opening of Sovereign Gold Bond scheme 2021-22 (Series IX) for subscription. The Gold Bond Scheme subscription of the new series will open on 10th January and ends on 14th January 2022. The Reserve Bank of India (RBI) will issue the bonds on behalf of GoI.
In terms of Government of India Notification No.4(5)-B(W&M)/2021 dated October 21, 2021, Sovereign Gold Bonds 2021-22 (Series IX) will be opened for subscription during the period January 10-14, 2022 with Settlement date January 18, 2022. The issue price of the Bond during the subscription period shall be Rs 4,786 (Rupees Four thousand Seven hundred eighty six only) – per gram, as also published by RBI in their Press Release dated January 07, 2022.
The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 4,736 (Rupees Four thousand seven hundred thirty six only) per gram of gold.
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Sovereign Gold Bond Scheme 2021-22 Series 9 Details
| Sovereign Gold Bond Scheme 2021-22 | Series IX |
| Gold Bond Scheme Issue date | 10th Jan 2022 |
| Gold Bond Scheme Last Date | 14th Jan 2022 |
| Settlement Date | 18th Jan 2022 |
| Gold Bond Scheme Issue Price | Rs 4,786 per gram |
| Gold Bond Scheme Issue Price with discount (for digital payments) | Rs 4,736 per gram |
Sovereign Gold Bond Scheme 2021-22 Features
| Sl.No. | Item | Details |
| 1 | Product name | Sovereign Gold Bond 2021-22 |
| 2 | Issuance | To be issued by Reserve Bank of India on behalf of the Government of India. |
| 3 | Eligibility | The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions. |
| 4 | Denomination | The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram. |
| 5 | Tenor | The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates. |
| 6 | Minimum size | Minimum permissible investment will be 1 gram of gold. |
| 7 | Maximum limit | The maximum limit of subscription shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market. |
| 8 | Joint holder | In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only. |
| 9 | Issue price | Price of Bond will be 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 for the last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be ₹50 per gram less for those who subscribe online and pay through digital mode. |
| 10 | Payment option | Payment for the Bonds will be through cash payment (up to a maximum of ₹20,000) or demand draft or cheque or electronic banking. |
| 11 | Issuance form | The Gold Bonds will be issued as Government of India Stock under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat form. |
| 12 | Redemption price | The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity, of previous 3 working days published by IBJA Ltd. |
| 13 | Sales channel | Bonds will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Ltd. (CCIL), designated post offices (as may be notified) and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents. |
| 14 | Interest rate | The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value. |
| 15 | Collateral | 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. |
| 16 | KYC documentation | Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities. |
| 17 | Tax treatment | The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond. |
| 18 | Tradability | Bonds will be tradable on stock exchanges. |
| 19 | SLR eligibility | Bonds acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards Statutory Liquidity Ratio. |
| 20 | Commission | Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription received by the receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or sub agents for the business procured through them. |
Sovereign Gold Bond Scheme 2021-22 Series 9 FAQs
What is the current series for Gold Bond Scheme?
The Current Sovereign Gold Bond Scheme 2021-22 is Series 9
When is the Gold Bond Scheme 2021 series 9 issue date ?
The Sovereign Gold Bond Scheme 2021 series 9 issue starts from 10th Jan 2022 ends on 14th Jan 2022
When is the settlement date for Sovereign Gold Bond Scheme 2021 Series 9?
The Sovereign Gold Bond Scheme 2021 settlement date is 18th Jan 2022
What is the issue price of Sovereign Gold Bond Scheme 2021-22 series 9?
The issue price of Sovereign Gold Bond Scheme 2021-22 series 9 is Rs 4,786 per gram
How to apply Gold Bond Scheme in Zerodha ?
Gold Bond Schemes can be purchased through the Zerodha Coin. Click here to login to Zerodha Coin to Investment. In case if you don’t have the Zerodha Account, Click here to open a new account with Zerodha.