Nifty99000 100%

Sensex99000 100%

Article rating: 4.2
Article rating: 4.8
Article rating: 4.3
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 4.0
Article rating: No rating
Article rating: 3.0


Sovereign gold bonds 2018-19 to be issued from April 16

Author: IANS/Saturday, April 14, 2018/Categories: Bonds

Sovereign gold bonds 2018-19 to be issued from April 16

New Delhi - The first tranche of the government's gold bonds scheme in the new fiscal -- the "Sovereign Gold Bonds 2018-19, Series-I -- will open for public subscription from April 16 to 20, 2018, according to an official announcement.

A Finance Ministry statement here said the bonds would earn an interest of 2.5% per annum, payable every six months on the nominal value. The bond certificates would be issued on May 4.

"Price of bond will be fixed in Indian rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association for the last 3 working days of the week preceding the subscription period.

"Issue price of the gold bonds will be Rs 50 per gram less for those who subscribe online and pay through digital mode," the ministry said in a statement.

It said that the tenure of the bond will be for a period of eight years, with an exit option from the fifth year to be exercised on the interest payment dates.

While the minimum permissible investment will be 1 gram of gold, "the maximum limit of subscribed shall be 4 kg for individual, 4 kg for HUF (Hindu Undivided Family) and 20 kg for trusts and similar entities per fiscal (April-March)". 

"The annual ceiling will include bonds subscribed under different tranches during initial issuance by government and those purchase from the secondary market," the statement said.

"In case of joint holding, the investment limit of 4 kg will be applied to the first applicant only."

The bonds would be sold through banks, designated post offices, Stock Holding Corporation of India (SHCIL) and recognised stock exchanges -- the National Stock Exchange and the Bombay Stock Exchange.

SGBs are denominated in multiples of gram of gold with a minimum unit of 1 gram and can also be held in demat form for ease of trading.

The government launched the Sovereign Gold Bond Scheme in November 2015 as an alternative to purchasing metal gold and mobilise the idle gold held by households and institutions into productive use in the long run.

This will help reduce the current account deficit by reducing the country's reliance on the import of gold to meet the domestic demand.

Print Rate this article:
No rating

Number of views (179)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free