New Delhi, Feb 25 (IANS): The issue price for Sovereign Gold Bonds' next series has been fixed at Rs 5,109 per gram of gold.

According to the Finance Ministry, the Sovereign Gold Bond Scheme 2021-22 (Series X) will be opened for subscription during the period February 28-March 4, with settlement date of March 8.

"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," the ministry said on Friday.

"For such investors the issue price of Gold Bond will be Rs 5,059 per gram of gold."

The SGBs are government securities denominated in grams of gold, and are substitutes for holding physical gold. Under the scheme, investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.

The bond is issued by the Reserve Bank on behalf of the government.