Sovereign Gold Bond Scheme 2021-22: Check Dates, Price, Eligibility, Tenor, Application Process, Benefits and More

Sovereign Gold Bond Scheme 2021-22: Part IX of the Sovereign Gold Bond Scheme 2021-22 is open for subscription for five days till 14 January 2022 at Rs. 4786 per gram of gold. Check dates, price, eligibility, tenor, the minimum and maximum limit, the application process, benefits and more.
Created On: Jan 10, 2022 19:26 IST
Modified On: Jan 10, 2022 19:35 IST
Sovereign Gold Bond Scheme 2021-22: Check Dates, Price, Eligibility, Tenor, Application Process, Benefits and More
Sovereign Gold Bond Scheme 2021-22: Check Dates, Price, Eligibility, Tenor, Application Process, Benefits and More

Sovereign Gold Bond Scheme 2021-22: The Centre in consultation with the Reserve Bank of India has announced Sovereign Gold Bond Scheme 2021-22 and decided to offer a discount of Rs. 50 per gram on the nominal value to those investors subscribing online and paying digitally. Series VII, VIII, IX, and X of Sovereign Gold Bond Scheme 2021-22 will be issued in four tranches from October 2021 to March 2022. 

The IX tranche of the Sovereign Gold Bond Scheme 2021-22 is open for subscription for five days from 10 January to 14 January 2022. The issue price has been fixed at Rs. 4786 per gram of gold. The Sovereign Gold Bond will be issued on 18 January 2022.

Part VIII of the Sovereign Gold Bond Scheme 2021-22 was opened for subscription from 29 November 2021 to 3 December 2021. The issue price for Sovereign Gold Bond Scheme 2021-22 was fixed at Rs. 4,791 per unit, equivalent to the value of one gram of gold, according to the RBI.  The bond was issued on 7 December 2021. 

The  Series VII Sovereign Gold Bond began on 25 October 2021 to 29 October 2021 at Rs. 4,765 per gram of gold. The date of issuance of the bond was 2 November 2021. 

Sovereign Gold Bond Scheme 2021-22 Dates

S.No.

Tranche

Date of Subscription

Date of Issuance

1.

2021-22 Series VII

25 October - 29 October 2021

2 November 2021

2.

2021-22 Series VIII

29 November - 3 December 2021

7 December 2021

3.

2021-22 Series IX

10 January - 14 January 2022

18 January 2022

4.

2021-22 Series X

28 February - 4 March 2022

8 March 2022

How to apply for Sovereign Gold Bond Scheme?

1- An individual can apply to any receiving office in Form 'A' or in any other form stating the grams of gold, full name along address. 

2- The application must have PAN Number allotted by the Income Tax Department. 

3- If all requirements are met, the receiving office will issue an acknowledgement receipt in Form 'B'. 

4- An incomplete application is liable to be rejected. 

It is to be noted that the Sovereign Gold Bonds will be sold through Scheduled Commercial Banks (excluding RRBs, Small Finance Banks and Payment Banks), designated Post Offices, Stock Holding Corporation of India Ltd (SHCIL), Clearing Corporation of India Limited and recognized stock exchanges viz National Stock Exchange of India Limited and Bombay Stock Exchange Ltd.

Sovereign Gold Bond Scheme 2021-22

1- Issuance: Sovereign Gold Bond is issued by the Reserve Bank of India on behalf of the Government of India. 

2- Eligibility: The Sovereign Gold Bonds are restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

3- Tenor: The tenor of the Bond will be 8 years. However, an exit option after the 5th year will be exercised on the next interest payment dates.

4- Limit: The minimum permissible limit is 1g of gold while the maximum limit is 4 Kg for an individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March). In the case of joint holding of the Sovereign Gold Bonds, the investment limit of 4 Kg will be applicable to the first applicant only.

5- Issue Price: The issue price will be based on the simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three 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 digitally. For the online subscribers, the issue price is set at Rs. 4786 per gram of gold in the ninth tranche of sovereign gold bonds 2021-22 scheme.

6- Issuance Form: The Sovereign Gold Bonds will be issued under the GST Act of 2006 as Government of India Stock. These bonds can be converted into Demat form and a Holding Certificate will be issued to the investors. 

7- Interest Rate: The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value. 

8- Collateral: The Sovereign Gold Bond can be used as collateral for loans. 

9- Tax Treatment: The interest on Gold Bonds is taxable according to the provision of the 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.

10- Tradability: Sovereign Gold Bonds are tradable on stock exchanges. 

11- History: Sovereign Gold Bond Scheme 2021-22 was launched in November 2015 to reduce the demand for physical gold and shift domestic savings into financial savings. 

Benefits of purchasing Sovereign Gold Bonds: 

1- The quantity of Gold for which you pay is protected. 

2- The risks and costs of storing physical gold are eliminated. 

3- Investors receive the market value of gold at the time of maturity of the Sovereign Gold Bonds. 

4- Like physical gold, SGBs do not have making charges. 

5- Sovereign Gold Bonds are government securities and are therefore considered safe.

6- Their value is denominated in multiples of gold grams and is considered a substitute for physical gold. 

Also Read | Sovereign Gold Bond Scheme 2020-2021: All you need to know about the tenth tranche (Series X) of SGB at 2.5% interest

Why do people invest in Gold during the recession and why is it considered safe?

FAQ

How much is a Sovereign Gold Bond Worth?

The IX tranche of the Sovereign Gold Bond Scheme 2021-22 is open for subscription at Rs. 4786 per gram of gold.

Can I buy Sovereign Gold Bond today?

The IX tranche of the Sovereign Gold Bond Scheme 2021-22 is open for subscription for five days from 10 January to 14 January 2022. The date of issuance of the bond is 18 January 2022. The issue price has been fixed at Rs. 4786 per gram of gold.

What is Sovereign Gold Bond?

Sovereign Gold Bond was launched in November 2015 to cut down the demand for physical gold and shift a part of the domestic savings into financial savings. The SGBs are government securities denominated in grams of gold, issued by the Reserve Bank of India (RBI) on behalf of GOI.

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