The government of India has decided to issue Sovereign Gold Bonds 2016-17 – Series III, in consultation with the Reserve Bank of India (RBI). Citizens can apply for the bonds from October 24, 2016, to November 02, 2016. The issue of bonds will be held on 17 November 2016.
The bonds will be sold through Stock Holdings Corporation of India Limited (SHCIL), Banks, Recognized stock exchanges, Designated post offices, Bombay Stock Exchange and National Stock Exchange of India.
The Sovereign Gold Bonds scheme, launched in November last year, provides an alternative mode of investment to physical gold. It gives investors a choice to expand their portfolios without buying the metal in physical form.
The government has released five tranches of the Sovereign Gold Bonds so far with more than 2 lakh applications for the fifth installment.
“Government of India, in consultation with the Reserve Bank, has decided to issue Sovereign Gold Bonds 2016-17 – Series III. Applications for the Bonds will be accepted from October 24, 2016, to November 02, 2016,” the Finance Ministry said, adding that Sovereign Gold Bonds will be issued on November 17. “The (SGB) investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value of the investment,” he added.
The Reserve Bank of India announced the issue of five tranches of Sovereign Gold Bonds till date worth Rs. 3,060 crore. Payment for the bonds will be through electronic banking or cheque or demand draft or cash payment (up to a maximum of Rs. 20,000.)
The highest amount of subscription by an entity will not be more than 500 grams per person per fiscal year. A self-declaration will be obtained for joint holding, and the investment limit of 500 grams will be applied to the first applicant only.