May 08, 2020

Sovereign Gold Bond Scheme 2020-21 Series II-Issue Price

In terms of GoI notification F.No.4(4)-B(W&M)/2020 and RBI circular IDMD.CDD.No. 2729/14.04.050/2019-20 dated April 13, 2020, the Sovereign Gold Bond Scheme 2020-21-Series II will be opened for subscription for the period from May 11, 2020 to May 15, 2020. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. May 05 – May 08, 2020 works out to ₹4,590/- (Rupees Four Thousand Five Hundred and Ninety only) per gram of gold.

Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be ₹4,540/- (Rupees Four Thousand Five Hundred and Forty only) per gram of gold.

Ajit Prasad

Director

Press Release: 2019-2020/2342

Sovereign Gold Bond pricing: online applicants paying digitally receive a per gram discount during the specified subscription period. The Sovereign Gold Bond Scheme 2020-21 Series II fixes the issue price by reference to the simple average closing price for 999 purity gold for the last three business days preceding the subscription period and opens subscriptions from May 11, 2020 to May 15, 2020. The Government, in consultation with the Reserve Bank, offers a per gram discount to investors who apply online and pay through digital mode, resulting in a discounted issue price for such applicants.