SGB 2022-23 Series II Opens For Subscription On Monday; Issue Price Fixed At Rs. 5197/gm

The Soverign Gold Bond Scheme 2022-23 Series II will open for subscription from Monday i.e. August 22 to August 26, 2022. For the same, the issue price has been fixed at Rs. 5197 per gm, the RBI said on Friday. In a statement, the RBI said, "The nominal value of the bond...works out to Rs 5,197", the central bank said in a statement.The date of issuance of the SGB has been provided as August 30, 2022.

The price of the bond is fixed in Indian rupee on the basis of a simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.

Furthermore, the central government in consultancy with the RBI has taken a decision to extend a discount of Rs. 50 per gm to investors who apply for the SGB online and make the payment via the digital mode.

These bonds are issued by the RBI on behalf of the central government.

SGB scheme was introduced in the year 2015 to discourage investment into physical gold and instead channelise the funds to promote financial savings.

As per the RBI's FAQs, 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.

These bonds can be purchased from banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges - NSE and BSE.