Business News: Sale of government bonds in gold yields 25,702 kronor until end of March.
A total of Rs 25,702 crore has been raised through the Sovereign Gold Bond (SGB) Scheme since its inception through the end of March, according to the RBI’s annual report released Thursday.
The scheme was launched in November 2015 with the aim of reducing the demand for physical gold and transferring part of the internal savings – used for the purchase of gold – to financial savings.
In 2020-21, the RBI issued 12 tranches of bonds totaling 16,049 crore (32.35 tons). “A total of Rs 25.702 crore (63.32 tons) has been raised through the scheme since its inception in November 2015,” the annual report states.
Under current taxation, the government has decided to issue the bonds in six tranches from From May 2021 to September 2021. The Reserve Bank of India (RBI) issues the bonds on behalf of the Union government.
The subscription to the second installment of the program expires on Friday. The third tranche or Series III 2021-22 will open for subscription from 31st May 4th June. The first tranche is open for subscription from May 17-21.
The price of the bonds is set in Indian rupees based on the simple average of the closing price of 999 purity gold published by India Bullion and Jewelers Association Ltd for the last three business days of the week preceding the subscription period.
Bonds are denominated in multiples of gold grams with a base unit of 1 gram. The term of the obligation is eight years with an exit option after the fifth year to be exercised on subsequent interest payment dates.
Meanwhile, RBI announced the early redemption price of the bonds issued with the first tranche in 2015. “… the early redemption price due on May 30, 2021 will be Rs 4,837 per unit of SGB and payable on May 29, 2021, “read a statement Thursday.