The Reserve Bank of India (RBI) has unveiled the much-anticipated issue price for the upcoming Sovereign Gold Bond (SGB) Series III, slated for subscription starting Monday, December 18, 2023. Investors eyeing the precious metal as a potential investment avenue can now seize this opportunity with the issue price set at Rs 6,199 per gram.
This revelation comes as part of the RBI’s strategic move to provide investors with a lucrative chance to secure their holdings in gold. The issue price is determined meticulously, relying on the simple average of the closing price of gold with 999 purity over the last three working days ahead of the subscription period. Specifically, this average is derived from the data recorded on December 13, December 14, and December 15, 2023.
The government’s decision to set the issue price at Rs 6,199 per gram seeks to entice and encourage prospective investors to consider the SGB Series III as a favorable investment option. With gold retaining its status as a valuable asset in the market, this calculated issue price aims to attract individuals, HUFs (Hindu Undivided Families), Trusts, Universities, and Charitable Institutions to partake in this financial instrument.
Furthermore, investors stand to benefit from an attractive fixed interest rate of 2.5% per annum on their investment, paid semi-annually without any compounding of interest. The maturity period for these bonds spans eight years, offering an added advantage of the option for early redemption after the fifth year, provided it coincides with an interest payment date.
The issuance of SGB Series III will be facilitated through various channels, including banks, the Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and recognized stock exchanges such as the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Notably, the government has also introduced an incentive for online investors by providing a discount of Rs 50 per gram less than the nominal value if the application is registered digitally and payment is made through digital means.
This move to reveal the issue price for the SGB Series III aligns with the government’s ongoing efforts to promote gold as a secure investment option and offers a promising opportunity for investors looking to diversify their portfolios.
With the issue price set at Rs 6,199 per gram, the SGB Series III beckons investors to consider capitalizing on this opportunity to secure their foothold in gold-backed investments.