Mumbai : The Reserve Bank of India (RBI) on Thursday said the Sovereign Gold Bonds (SGBs) issued on November 17 will become eligible for trading on stock exchanges from Friday.
So far, the government has come out with six tranches of the SGBs, an alternative mode of investment to physical gold which was launched in November last year. It provides investors a choice to diversify portfolio without the need to buy the metal in physical form.
The “Sovereign Gold Bonds (SGBs), issued on November 17, 2016, held in dematerialised form shall be eligible for trading from December 9, 2016 on stock exchanges recognised…,” the RBI said, reports PTI. The maximum amount subscribed by an entity under the SGBs cannot be more than 500 grams per person per fiscal year. A self-declaration to this effect will be obtained. In case of joint holding, the investment limit of 500 grams will be applied to the first applicant only. Price of bond are fixed in rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the week preceding the subscription period.
