The sixth tranche of Sovereign Gold Bond of the Union government will be available for sale at all the 24 head post offices in the Central region, Tiruchi, till November 2, J.T. Venkateswarlu, Postmaster General, Central Region, Tamil Nadu, said in a press release.
Investors can buy these gold bonds of a minimum of 1 gram to 500 grams per financial year.
The issue price of the bond is Rs.2,957 per gram. Though the actual price is Rs.3,007 a gram, a discount of Rs.50 per gram is offered this time.
This scheme will provide investors easier option as it does not require storage of physical gold and helps in reducing the demand for it. The maturity value of the gold bond will be the price of the value of pure gold on the previous weeks fixed by the Indian Gold Merchants Association.
Investors will also get 2.75 per cent of fixed interest per year which will be paid on half yearly basis.
The maturity period of these bonds will be fixed as 8 years from the date of issue of bonds — November 17. However, investors can have a choice of pre-mature redemption from the fifth year of the date of issue on the interest payment dates.
The bonds can be used as collateral for loans. The loan to value ratio will be as applicable to ordinary gold loan mandated by the RBI from time to time. The bonds shall also be transferable and tradable through stock exchange. The benefit arising out of redemption value of these bonds will be tax free, the press release said.
