Sovereign Gold Bonds or SGBs To Come Up In Six Tranches In H1FY21

In the first half of FY21, the SGBs will be issued in six tranches between April and September announced the Centre on Monday in consultation with RBI.
Here is the subscription and issuance schedule of all six tranches:

The press release stated: "The Bonds will be sold through Scheduled Commercial banks(except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited."
The eligible investors in these SGBs include individuals, HUFs, universities and charitable institutions.

For the first tranche referred as 2020-2021 Series I, issue date is April 28, while the subscription shall be open from April 20- April 24, 2020.

The SGBs come with a maturity of 8 years with exit option after fifth year to be exercised on the interest payment dates. For online investors a discount of Rs. 50 per gm will be offered. And on the pricing, the release from the finance ministry said, "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 Rs.50 per gram less for those who subscribe online and pay through digital mode."

And interest shall be payable half yearly at the rate of 2.5% per annum. The capital gains on SGBs are exempt from tax implication while on transfer there is indexation benefit provided.

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