For the Sovereign Gold Bond Scheme 2020-21-Series IV that will open for subscription beginning July 6, the issue price has been fixed at Rs. 4852 per gm, said RBI in a release on Friday.
Earlier in April, the RBI said the centre will come up with SGBs 2020-21 Series in six tranches from April to September.
"The nominal value of the bond based on the simple average closing price (published by the India Bullion and Jewellers Association) for gold of 999 purity of the last three working days of the week preceding the subscription period...works out to Rs 4,852 per gram of gold," the RBI said. These bonds are issued by the RBI on behalf of the government of India.
Similar to previous issues, those applying for these bonds through the online route and making payment via digital transaction will be provided a discount of Rs. 50 per gram."For such investors, the issue price of gold bond will be Rs 4,802 per gram of gold," the central bank said.
For the previous issue which remained opened between June 8 and June 12, the issue per gram was Rs. 4677.
Resident individuals, HUFs, charitable institution, trusts and universities can invest in SGBs.
The bonds are denominated in multiples of grams of gold with a basic unit of 1 gram, and the tenor of the SGB will be eight years with exit option after fifth year to be exercised on the interest payment dates.
The scheme was introduced in the year 2015 to channelize domestic savings into financial savings and deter demand for physical gold.