Govt To Issue Sovereign Gold Bonds In Six Tranche; Subscription For 1st Tranche Opens On 17 May

The Centre, in consultation with the Reserve Bank of India (RBI), has issued the schedule for the Sovereign Gold Bonds Scheme 2021-22.

Accordingly, the subscription for the first tranche of the scheme will open on 17 May and will end on 21 May, according to a statement released by the Ministry of Finance on Wednesday (12 May).

The Sovereign Gold Bonds Scheme 2021-22 will be issued in six tranches, starting from May 2021 to September 2021.

The date of issuance for the first trance is 25 May 2021. The second tranche will start on 24 May and will end on 28 May. The third trance will commence on 31 May, and remain open for subscription till 4 June.

The fourth tranche will begin on 12 July and will end on 16 July. The fifth tranche is between 9 August and 13 August. Finally, the sixth tranche is scheduled between 30 August - 3 September.

"The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021," said an official statement.

The bonds will be sold through scheduled commercial banks (except small finance banks and payment banks), Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and recognised stock exchanges -- National Stock Exchange of India Ltd and the Bombay Stock Exchange.

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of the Government of India.

The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest.