Applications for Sovereign Gold Bonds Series IV begin February 27

Ministry of Finance on Thursday announced the issuance of Sovereign Gold Bonds 2016-17- Series IV. Subscription for the bonds begin on February 27 and end on March 03, 2017. 

The Bonds will be issued on March 17, 2017, the Ministry said. 

"The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange," Ministry said. 

Price of Gold Sovereign Bonds will be fixed in Indian currency on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the week (Monday to Friday) preceding the subscription period. 

The issue price of the Gold Bonds will be Rs 50 per gram less than the nominal value.

In order to move towards the digital payments, the cash payments for the Bond will be acceptable up to Rs 20,000. Other mode of payment, like demand draft or cheque or electronic banking are also available. 

"The investors will be compensated at a fixed rate of 2.5% per annum payable semi-annually on the nominal value," Ministry said.