The government has recently unveiled the highly anticipated Sovereign Gold Bond Scheme for the year 2023-24, providing an exciting investment opportunity for individuals. Starting from 19th June, interested investors can subscribe to these bonds and take advantage of the scheme's attractive features. 

The central government has fixed the issue price at ?5,926 per gram of gold for the first tranche of the Sovereign Gold Bond Scheme 2023-24, which will open for subscription for five days from 19 June, the ministry of finance said in a statement on Friday.

“Sovereign Gold Bonds 2023-24 (Series I) will be opened for subscription during the period June 19-23, 2023 with Settlement date June 27, 2023," the ministry said.

“The issue price of the Bond during the subscription period shall be ?5,926 (Rupees Five Thousand Nine Hundred Twenty Six only) per gram, as also published by RBI in their Press Release dated June 16, 2023," it added.

The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges -- National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

“The Government of India in consultation with the Reserve Bank of India has decided to allow discount of ?50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode," the ministry said.

“For such investors the issue price of Gold Bond will be ?5,876 (Rupees Five Thousand Eight Hundred Seventy Six only) per gram of gold," it added.

The price of SGB will be fixed in Indian rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period.

The bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram. The tenor of the bond will be for a period of 8 years, with an exit option after the 5th year to be exercised on the next interest payment dates.

The minimum permissible investment is 01 gram of gold. The maximum limit of subscription is 4 kilograms for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).