Govt fixes Rs 3,119/gram as rate for Gold Bond Scheme
The government has reduced the minimum subscription denomination to 1 gm in the 4th tranche, which would be open for investment by individuals and institutional investors from July 18-22.
"To attract small investors, the minimum subscription has been reduced to 1 gm, although the maximum remains at 500 gm per person/institution," the finance minister said in a statement. Earlier, the minimum denomination was 5 gm.
"SGB can now be purchased from NSE and BSE, besides all Bank branches, select Post Offices and the Stock Holding Corporation of India Limited (SHCIL)," the ministry said.
The first 3 tranches had attracted an investment of Rs 1,318 crore, equivalent to 4.9 tons of gold at the then prevailing prices. With the added features, it is expected that the 4th tranche of SGB would garner much higher investment.
The 4th tranche of the SGB scheme is the first series in 2016-17. SGB gives an interest of 2.75 per cent per annum, payable every six months on initial investment and does this without the attendant risk of theft/loss or impurities associated with physical gold. The investment in SGB is also eligible for Statutory Liquidity Ratio of Banks.