Sovereign Gold Bond Scheme
BSE has unveiled an online bidding platform for sovereign gold
bonds and begun conducting mock bidding sessions on the system. BSE has
received Reserve Bank’s approval to start an online bidding platform for sovereign gold
bond (SGB) scheme. So far, three tranches of the bonds have
been issued amounting to about Rs.1,322 crore.
About Sovereign Gold Bond Scheme:
Under the scheme, gold bonds are issued in denominations of 5
grams, 10 grams, 50 grams and 100 grams for a term of 5-7 years with a rate of
interest to be calculated on the value of the metal at the time of investment.
The scheme has an annual cap of 500 grams per person.
- The bonds will be sold through banks, Stock Holding Corporation of India Limited and designated post offices.
- As per the scheme, the gold bonds will be sold only to resident Indian entities including individuals, Hindu undivided families, trusts, universities, and charitable institutions.
- The bond tenure will be eight years with exit option beginning the fifth year onwards. They will also be tradable in the bourses.
- Bonds can also be used as collateral for loans.
