Sovereign Gold Bond Scheme Opens For Second Tranche

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The Reserve Bank of India will issue the second tranche of Sovereign Gold Bonds from today.

Applications for the bond will be accepted from January 18, 2016 to January 22, 2016. The Bonds will be issued on February 8, 2016, the RBI said.

Sovereign Gold Bond Scheme Opens For Second Tranche

The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL) and designated post offices. The borrowing through issuance of the Bond will form part of market borrowing programme of the Government of India.

Sovereign Gold Bond, acts as an alternative to purchasing metal gold. Accordingly, the first tranche was open for subscription from November 05 to November 20, 2015.

These bonds will be issued in tranches. Each tranche will be kept open for a period to be notified.

The issue price of the Sovereign Gold Bond for this tranche has been fixed at Rs 2,600/- (Rupees Two Thousand Six Hundred only) per gram of gold.

The investors will be compensated at a fixed rate of 2.75 per cent per annum payable semi-annually on the initial value of investment.

The rate has been fixed on the basis of simple average of closing price for gold of 999 purity of the previous week (January 11-15, 2016) published by the India Bullion and Jewellers Association Ltd (IBJA).

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