SGB Series III settlement on December 28

In terms of Government of India Notification No.4(6)-B(W&M)/2023 dated December 08, 2023, Sovereign Gold Bonds 2023-24 (Series III) will be opened for subscription during the period December 18-22, 2023 with Settlement date December 28, 2023.

The issue price of the Bond during the subscription period shall be Rs 6,199 (Rupees Six Thousand One Hundred Ninety Nine only) per gram, as also published by RBI.

The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 6,149 (Rupees Six Thousand One Hundred Forty Nine only) per gram of gold.

In the row, Colin Shah, MD, Kama Jewelry said on the Third Tranche of Sovereign Gold Bond that, “The successful closure of the initial tranche of the Sovereign Gold Bond (SGB) at a CAGR of approximately 10.8%, coupled with an additional annual interest of 2.5%, serves as a noteworthy testament of the popularity of this asset class among investors.

The incorporation of a 50% discount for transactions conducted through digital modes further enhances its attractiveness. Given India’s status as the world’s leading consumer of gold, SGBs have emerged as a compelling avenue for diversifying investment portfolios. Investors stand to benefit in the long term from the potential capital appreciation of gold prices, all while mitigating concerns related to the security associated with physical gold holdings.”

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