New Delhi:  Ahead of Dhanteras, the eighth tranche of Sovereign Gold Bond 2020-21, issued by the Reserve Bank India (RBI) will be opened for subscription from Monday, November 9 to 13. The issue price for the Sovereign Gold Bond has been fixed at Rs 5,177 per gram of gold, the central bank has said in a statement. Also Read - Gold Price Rises by Rs 45 to Rs 48,273, Silver Gains Rs 407

“The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity … works out to Rs 5,177 per gram of gold,” stated the RBI. Also Read - Gold Price Drops Below Rs 49,000 per 10 gm as Vaccine Hopes Continue to Rise

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RBI will offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

“For such investors, the issue price of Gold Bond will be Rs 5,127 per gram of gold,” the RBI has said.

Notably, the issue price for the bonds (Series VII), which was open for subscription from October 12 to October 16, was Rs 5,051 per gram of gold.

Eligibility: The bonds are restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

Denomination:  The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.

Tenor:  The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates.

Minimum size:  Minimum permissible investment will be 1 gram of gold.

Payment option:  Payment for the Bonds will be through cash payment (up to a maximum of Rs 20,000) or demand draft or cheque or electronic banking.