The first tranche of Sovereign Gold Bond (SGB) scheme for the current financial year opened for subscription today, June 20. The issue price of gold has been fixed at Rs 5,091 per gram.

Sovereign Gold Bond Scheme 2022-23 – Series I will be open till June 24, 2022. Investors applying online and paying online get a discount of Rs 50 per gram. The issue price for such investors would be Rs 5,041 per gram. The issue date will be 28 June 2022.

“The nominal value of the bond is based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period, works out to Rs 5,091 per gram of gold,” the Reserve Bank of India said.

According to the official release, the tenure of the SGB will be for eight years, with an option for premature redemption after the 5th year, the date on which interest will be payable.

The minimum allowable investment would be 1 gram of gold. The investors will also be compensated at a fixed rate of 2.50 per cent per annum, payable half-yearly on the nominal value.

Interested buyers can pay either throug cash (up to a maximum of Rs 20,000), demand draft, check or electronic banking. After issuance, a holding certificate will be issued for the same, which is eligible for conversion in Demat form.

Bonds will be sold through Nationalised Banks, Scheduled Private Banks, Post Offices, Scheduled Foreign Banks, Stock Holding Corporation of India Limited and authorized Stock Exchanges either directly or through their agents.

Sovereign Gold Bonds can be bought by Individuals, Hindu Undivided Families (HUFs), Trusts, Charitable Institutions and Universities. The minimum investment in bonds will be one gram with a maximum membership limit of 4 kg for individuals and HUFs and 20 kg for trusts and other entities, respectively.

Know Your Customer (KYC) norms for Sovereign Gold Bonds will be the same as for purchase of physical gold.