The Reserve Bank of India on Monday said that sovereign gold bonds (SGB) issued last month will be eligible for trading on stock exchanges from October 19, 2016.
The scheme was announced by the government on August 29. The fifth tranche of the bond was open for subscription from September 01, 2016 to September 09, 2016.
The Bonds were issued on September 23, 2016. The Bonds were sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges.
The aggressive marketing of the product by government including through its receiving offices, like banks, post offices, NSE and BSE helped in popularising the bonds, reports PTI.
SGB will earn interest rate of 2.75 per cent per annum. Note that interest on these bonds will be taxable as per the provision of Income Tax Act.