Sovereign Gold Bond FY22-23 Series-II (Tranche 61) issue review

Published on Saturday, August 20, 2022 by Dilip Davda

• SGB FY23 Series-II (Tranche 61) has fixed a price of Rs. 5197 per one gram.
• The online applicants will be eligible for an upfront discount of Rs. 50 per gram.
• Investment for the long term may be considered.

Reserve Bank of India announced on June 15, 2022, its SGB (Sovereign Gold Bonds) plans for the financial year 2022-23. As per the announcement, FY22-23 Series II SGB is opening on August 22, 2022, and will close on August 26, 2022.

Subscription for the Bonds may be made in the prescribed application form "Form A" or in any other form as near as thereto, stating clearly the grams (in units) of gold and the full name and address of the applicant. Every application must be accompanied by valid 'PAN details' issued by the Income Tax Department to the investor(s). Designated Scheduled Banks, designated Post Offices, Stock Holding Corporation of India Ltd, Clearing Corporation of India Ltd, and recognized stock exchanges, viz. National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd is the Receiving Offices that are authorized to receive applications for the Bonds either directly or through agents and render all services to the customers. The Receiving Office shall issue an acknowledgment receipt in Form B to the applicant.

The issue price of the SGBs will be less than Rs 50 per gram for the investors who subscribe online and pay through digital mode. An interest rate of 2.5 percent per annum will be paid semi-annually to the investors.

All online applications should be accompanied by the email Id of the investor/s which should be uploaded on the Ekuber portal of the Reserve Bank of India along with the subscription details.

For SGB 2022-23, Series II, RBI has announced a price of Rs. 5197 per gram. Investors applying online are eligible for an upfront discount of Rs. 50 per gram and they have to pay Rs. 5147 per gram.

The maximum limit of subscription is 4 Kg for individuals, 4 Kg for HUFs, and 20 Kg for trusts and similar entities per fiscal year.

The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.

In 2021-22, SGBs were issued in 10 tranches for an aggregate amount of Rs 12,991 crore (27 tonnes).

CONCLUSION:

For investors looking for a long-term investment in bullion, this is the best option for them as they will get half yearly interest at 2.50% p.a. on their investment amount. They will get an option for early redemption after 5 years. In recent years, SGB has emerged as the best investment option for bullion investors. (Apply).