Sovereign Gold Bond Tranche 7 Review (Oct 2020)

Published on Sunday, October 11, 2020 by Dilip Davda

Best Online Trading Account

We can help you find the right broker and save upto 90% in brokerage fees.

NamePhone
EmailCity
State
Are you a day trader?
Sovereign Gold Bond Tranche 7 Review (Oct 2020)

After six successful SGB scheme for the first half of current fiscal 2020-21, RBI has now announced another bunch of six SGB schemes for the second half.

This latest gold bond issue comes at a time when gold prices have corrected significantly from August highs.

 

 

 

Schedule for six SGB schemes for the second half of FY21

Sr. No.

Tranche

Date of Subscription

Date of Issuance

1

2020-21 Series VII

October 12 - 16, 2020

October 20, 2020

2

2020-21 Series VIII

November 09 - 13, 2020

November 18, 2020

3

2020-21 Series IX

December 28 2020 - January 01, 2021

January 05, 2021

4

2020-21 Series X

January 11-15, 2021

January 19, 2021

5

2020-21 Series XI

February 01- 05, 2021

February 09, 2021

6

2020-21 Series XII

March 01- 05, 2021

March 09, 2021

Sovereign Gold Bond Scheme 2020-21 Series VII-Issue opens for subscription on October 12, 2020 and will close on October 16, 2020. This is the 44th Tranche of the scheme since its launch.

SGB VII scheme price is announced at Rs. 5051 per 1 gram based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. October 07 - October 09, 2020.

Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs. 50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be Rs. 5,001/- (Rupees five thousand and one only) per gram of gold.

Key features:

  • Minimum investment in the Bonds shall be one gram with a maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time
  • The tenor of the Bond will be for a period of 8 years, with exit option after 5th year to be exercised on the interest payment dates.
  • A fixed rate of 2.5 per cent per annum is applicable on the Sovereign Gold Bond scheme, payable semi-annually.
  • Redemption price shall be fixed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity for previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.
  • The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The Capital Gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond;
  • Nomination facility is available up to max. two nominees;
  • The securities will be credited in demat accounts of investors after allotment, subject to matching of particulars furnished in the application with the Depositories' records.
  • Bonds will be tradable on stock exchanges within a fortnight or on such a date as notified by the RBI.

RBI had said in its annual report 2019-20 that a total of Rs 9,652.78 crore (30.98 tonnes) has been raised through the sovereign gold bonds scheme (37 tranches) since its inception in November 2015. The central bank had issued 10 tranches of sovereign gold bonds for an aggregate amount of Rs 2,316.37 crore (6.13 tonnes) during 2019-20.

Data on Outstanding of Sovereign Gold Bonds (Tranche wise) as on September 8, 2020

Sr. No.

Series

Issue price/unit

Number of units (in grams)

1

2015-I

2684

913571

2

2016-I

2600

2869973

3

2016-II

2916

1119741

4

2016-17 Series I

3119

2953025

5

2016-17 Series II

3150

2615800

6

2016-17 Series III

3007

3598055

7

2016-17 Series IV

2943

2220885

8

2017-18 Series I

2951

2027695

9

2017-18 Series II

2830

2349953

10

2017-18 Series III

2956

264815

11

2017-18 Series IV

2987

378945

12

2017-18 Series V

2971

174024

13

2017-18 Series VI

2945

153356

14

2017-18 Series VII

2934

175121

15

2017-18 Series VIII

2961

135666

16

2017-18 Series IX

2964

105512

17

2017-18 Series X

2961

107380

18

2017-18 Series XI

2952

81614

19

2017-18 Series XII

2890

111218

20

2017-18 Series XIII

2866

131958

21

2017-18 Series XIV

2881

327434

22

2018-19 Series I

3114

650337

23

2018-19 Series II

3146

312258

24

2018-19 Series III

3183

409398

25

2018-19 Series IV

3119

207886

26

2018-19 Series V

3214

243606

27

2018-19 Series VI

3326

207388

28

2019-20 Series I

3196

459789

29

2019-20 Series II

3443

535947

30

2019-20 Series III

3499

1024837

31

2019-20 Series IV

3890

627892

32

2019-20 Series V

3788

455776

33

2019-20 Series VI

3835

693210

34

2019-20 Series VII

3795

648304

35

2019-20 Series VIII

4016

522119

36

2019-20 Series IX

4070

405957

37

2019-20 Series X

4260

757338

38

2020-21, Series I

4639

1772874

39

2020-21, Series II

4590

2544294

40

2020-21, Series III

4677

2388328

41

2020-21, Series IV

4852

4130820

42

2020-21, Series V

5334

6349781

43

2020-21, Series VI

5117

3190133

TOTAL

51354013

(Source RBI website data)

CONCLUSION:

Cash surplus investors may consider investing in this offer with a long term perspective as Gold analysts are very bullish on its upward price trends going forward.

Rate this article
5
4.6
Rating:Rated 4.6 stars

Vote Here ...

1 Comments

Vikrant
1. Vikrant  Oct 21, 2020 10:30 I Like It. | Report Abuse Reply
Sir, This is my first time applying for SGB, can you pls tell me how can I check allotment of SGB applied through ICICI bank, as I haven't received any issue letter from official RBI website.








Search Chittorgarh.com:

Download Our Mobile App

Android App iOS App