The government has decided to come out with the next tranche of sovereign gold bond on October 7 to cash in on the festival mood. The Sovereign Gold Bond Scheme 2019-20 - Series V will be opened for subscription from October 7 to 11, at issue price of Rs 3,788 per gram. Further, the government has decided to offer a discount of Rs 50 per gram for investors applying online and making payment for the purchase of the bond through digital mode, a Finance Ministry statement said.
"For such investors, the issue price of gold bond will be Rs 3,738 per gram of gold," it said.
The sovereign gold bond scheme was launched in November 2015 with an objective of reducing demand for physical gold and shifting a part of domestic savings, used for purchase of the yellow metal, into financial savings.
Under the scheme, bonds are denominated in units of one gram of gold and multiples thereof. Minimum investment in the bonds is one gram with a maximum limit of subscription of 500 gram per person per fiscal year (April-March).
The maximum limit of subscription is 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities per fiscal.