Sovereign Gold Bond Series IV: Issue Price, Subscription Dates, and Key Details

Sovereign Gold Bond Series IV: Issue Price, Subscription Dates, and Key Details

Issue Price and Subscription Dates

  • The issue price of the next tranche of Sovereign Gold Bond (SGB) for Series IV is fixed at Rs 6,263 per gram.
  • Subscription for the SGB will be open from February 12 to February 16, 2024.

Discount for Online/Digital Transactions

  • Investors applying online and paying through digital mode will receive a discount of Rs 50 per gram.
  • The issue price for such investors will be Rs 6,213.

Sales Channels

  • SGBs will be sold through various channels including scheduled commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and stock exchanges.

Determination of Price

  • The price of SGB is determined in Indian rupees based on the simple average of the closing price of gold of 999 purity over the last three working days preceding the subscription period.

Interest and Subscription Limits

  • Investors receive a fixed rate of 2.50% per annum payable semi-annually on the nominal value.
  • Subscription limits are capped at 4 kg for individuals, 4 kg for Hindu Undivided Families (HUF), and 20 kg for trusts and similar entities per fiscal year.

Tenor and Redemption Option

  • The tenor of the SGB is eight years, with an option for premature redemption after the 5th year, which can be exercised on the date when interest is payable.

Issuer and Collateral Use

  • The Reserve Bank of India (RBI) issues the bonds on behalf of the Government of India.
  • SGBs can be used as collateral for loans.

Know Your Customer (KYC) Norms

  • KYC norms for SGB purchases are the same as those for the purchase of physical gold.

Objective of the Scheme

  • The Sovereign Gold Bond Scheme was launched in November 2015 to reduce the demand for physical gold and encourage the shift of domestic savings from gold purchases to financial savings.

Multiple Choice Questions (MCQs):

  1. What is the issue price per gram for the Sovereign Gold Bond Series IV?
    • A) Rs 6,263
    • B) Rs 6,213
    • C) Rs 6,213.50
    • D) Rs 6,263.50
    • Answer: A) Rs 6,263
  2. During which dates will the subscription for Sovereign Gold Bond Series IV be open?
    • A) February 10-14, 2024
    • B) February 12-16, 2024
    • C) February 15-19, 2024
    • D) February 20-24, 2024
    • Answer: B) February 12-16, 2024
  3. What discount do investors receive per gram for applying online and making digital payments for the Sovereign Gold Bond?
    • A) Rs 20
    • B) Rs 30
    • C) Rs 40
    • D) Rs 50
    • Answer: D) Rs 50
  4. What is the maximum subscription limit for trusts and similar entities per fiscal year for the Sovereign Gold Bond?
    • A) 2 kg
    • B) 4 kg
    • C) 10 kg
    • D) 20 kg
    • Answer: D) 20 kg
  5. What is the primary objective of the Sovereign Gold Bond Scheme?
    • A) Encouraging investment in physical gold
    • B) Discouraging financial savings
    • C) Reducing demand for physical gold and encouraging financial savings
    • D) Increasing imports of physical gold
    • Answer: C) Reducing demand for physical gold and encouraging financial savings