The Indian government has launched the first tranche of its Sovereign Gold Bonds scheme for the financial year 2017-18 to coincide with the Akshay Tritiya festival which is considered an ausipicious occasion to purchase gold. Subscriptions to the scheme are being accepted from April 24 to 28, 2017, the government said.

The bonds are being issued at a price of Rs 2,901 per gram, which includes a Rs 50 per gram discount being offered by the government over the official price.

As earlier decided, the price of each tranche was to be based on the simple average of closing price of gold of 999 purity is published by the India Bullion and Jewellers Association for the week (Monday to Friday) preceding the subscription period, which worked out to Rs 2,951 per gram.

Applications for the bonds can be made at post offices, banks, Stock Holding Corporation of India (SHCIL) and recognised stock exchanges – NSE and BSE – and the minimum investment limit for these bonds will be 1 gm, while the maximum amount that can be subscribed will not be more than 500 gm per person per financial year.  The bonds would earn an interest of 2.75 per cent every year, payable every six months on the initial investment, the government said.

The bonds will be issued on May 12, 2017.