Govt fixes Sovereign Gold Bond rate at Rs 2,961 per gram

Mumbai: The price of new series of sovereign gold bonds (SGBs) opening on Monday has been fixed at Rs 2,961 per gram, the Reserve Bank of India said on Friday.

The government, in consultation with the Reserve Bank, has decided to offer a discount of Rs 50 per gram to investors applying online and making payments digitally.

"For the subscription period from November 27, 2017 to November 29, 2017...the nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period (November 22 to 24) works out to Rs 2,961," the RBI said in a statement.

The issue price will be Rs 2,911 a gram for investors applying online and the payment through digital mode.

The current round of bonds is part of the SGB calender announced till December and is spread over 12 weeks.

The price was Rs 2,964 per gram for the bond that had opened on November 20. The subscription opens from Monday to Wednesday every week between October 9 and December 27.

The settlement is to be made on the first business day of the following week. Under the scheme, the bonds are denominated in units of one gram of gold and multiples thereof.

Minimum investment in the bonds is one gram, with a maximum limit of 500 grams per person, per fiscal year (April to March).