InvestorQ : Can you tell me about the sovereign gold bonds issue opening on Monday 25-October?
indhumathi Sayani made post

Can you tell me about the sovereign gold bonds issue opening on Monday 25-October?

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2 months ago
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Here is what you need to know about the sovereign gold bond issue opening on 25 October.

· The fiscal year’s seventh tranche of SGBs will open for subscription on Monday, October 25th and will open for 5 working days till 29-October.

· The issue price has been fixed at Rs.4,765 per gram of gold and in addition there will be a Rs.50 per gram discount on digital applications, bringing down the digital application cost to Rs.4,715 crore.

· SGBs will be free of capital gains if held for the full tenure of 8 years. However, there is a liquidity window available after 5 years and the bonds are also listed after six months although the trading volumes are very thin.

· SGBs can be held in demat form and also in physical form. There will be an assured interest payment of 2.5% on the face value of the bond. In addition, these bonds will also appreciate with the appreciation in the price of underlying gold.

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