Sovereign Gold bond scheme opens with last date 2 Nov offering discount of Rs 50 per gram

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Latest News– In a bid to make Sovereign Gold Bonds (SGB) more attractive, the government has decided to offer a discount of Rs 50 per gram in the sixth tranche of the scheme with maximum amount subscribed by an entity will not be more than 500 grams per person per fiscal year. A self- declaration to this effect will be obtained. In case of joint holding, the investment limit of 500 grams will be applied to the first applicant only.

What is Sovereign Gold bond scheme

Sovereign Gold Bond scheme provides  investors will get returns that are linked to gold price, the scheme is expected to offer the same benefits as physical gold. They can be used as collateral for loans and can be sold or traded on stock exchanges.

To buy Sovereign Gold Bonds in 2016 will be issued on payment of rupees and denominated in grams of gold. Minimum investment in the bond shall be 1 grams. The bonds can be bought by Indian residents or entities and is capped at 500 grams.

 

Benefits of Sovereign Gold Bond scheme

  1. The Sovereign Gold Bonds will be available both in demat and paper form.
  2. The tenor of the bond is for a minimum of 8 years with option to exit in 5th, 6th and 7th years.
  3. They will carry sovereign guarantee both on the capital invested and the interest.
  4. Bonds can be used as collateral for loans.
  5. Bonds would be allowed to be traded on exchanges to allow early exits for investors who may so desire.
  6. Further, bonds would be allowed to be traded on exchanges to allow early exits for investors who may so desire.

 

 

Official Website Sovereign Gold Bond Schme  – http://finmin.nic.in/swarnabharat/sovereign-gold-bond.html

sovereign-gold-bonds-scheme

Issuing of Sovereign Gold Bond scheme

 

  • The Bonds are issued by the Reserve Bank of India on behalf of the Government of India. The bonds are distributed through banks and designated post offices. This should make subscribing to the bonds an easy affair.
  • During redemption, “the price of gold may be taken from the reference rate, as decided, and the Rupee equivalent amount may be converted at the RBI Reference rate on issue and redemption”.
  • Sovereign Gold Bonds will be issued on payment of rupees and denominated in grams of gold. Minimum investment in the bond shall be 1 grams. The bonds can be bought by Indian residents or entities and is capped at 500 grams.
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