6th gold bond tranche at discount, less interest

6th gold bond tranche at discount, less interest

The sixth tranche of the sovereign gold bond scheme will open from Monday, at yearly interest of 2.5 per cent, less than the 2.75 per cent of previous tranches.

However, the bonds have been offered at a discount. "The issue price will be Rs 50 a gramme less than the nominal value," said the finance ministry. Earlier bond issues were at the nominal closing value of pure gold.

The government said the Reserve Bank of India would issue the sixth tranche, the third this financial year, on November 17. Applications will be accepted from October 24 to November 2. "The tenor will be for eight years, with exit option from the fifth year to be exercised on the interest payment dates," it stated. All other conditions remain the same.

The minimum permissible investment will be a gramme of gold, while the maximum subscribed by an entity cannot exceed 500g per person in a financial year. In the case of a joint holding, the latter limit will apply to only the first applicant.

The Centre is offering the bonds at a discount to attract more customers. Since last November, five tranches have been issued and a total of a little over 10 tonne equivalent was issued The total amount collected has been Rs 3,060 crore.

Business Standard