Govt to launch sovereign gold bond scheme on Oct 9

 

Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds 2017-18 – Series-III. Applications for the bond will be accepted from October 09, 2017 to December 27, 2017. The Bonds will be issued on the succeeding Monday after each subscription period. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange.

Sovereign Gold Bond (SGB) Scheme was notified by the Government of India on November 05, 2015 after due approval of the Cabinet. The main objective of the scheme was to develop a financial asset as an alternative to purchasing metal gold. Gold Bond Scheme enables people to invest in yellow metal without physically buying gold, and receive money equivalent to the market value of gold as determined by the RBI at the time of redemption. Besides, interest would be paid on the invested amount semi-annually. The scheme provides adequate protection against the price fluctuation in gold during the period of investment.