Gold bond scheme to open on April 24

New Delhi-India (April 20)  The first tranche of sovereign gold bonds for this fiscal will open for subscription on April 24 and close on April 28.

“The issue price of the gold bonds will be ₹50 per gram less than the nominal value,” said the Finance Ministry on Thursday, adding that the bonds will be issued on May 12.

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

As in the previous tranches, investors can invest in a minimum of one gram of gold and a maximum of 500 gm in a year. Investors will get a fixed return of 2.50 per cent per annum payable semi-annually on the nominal value.

“The tenor of the bond will be ...eight years, with exit option from the fifth year to be exercised on the interest payment dates,” said the Finance Ministry.

The scheme, which was launched in September 2015 to temper down the appetite for gold that had led to a high current account deficit, has received good response.

In 2016-17, the Finance Ministry and the Reserve Bank of India had rolled out four tranches of gold bonds.

Source: BusinessLine