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Trading In Sovereign Gold Bonds To Begin By Month-End: FinMin


Government today said that trading of the Sovereign Gold Bond (SGB) will begin by month-end and the fourth tranche of the scheme will be launched thereafter.

The decision to launch the trading of the SGB by May-end was taken at a meeting held under the chairmanship of Economic Affairs Secretary Shaktikanta Das recently to review the progress of the gold related schemes.

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Trading In Gold Bonds To Begin By Month-End: FinMin

"On the Sovereign Gold Bond Scheme, it was discussed that tradability of the bonds will be started by the end of May and fourth tranche of the SGB will be launched soon," a Finance Ministry statement said.

It was also decided to ask the banks to put concerted efforts to mobilise more gold under the Gold Monetisation Scheme (GMS) to help the government achieve the objectives of the scheme.

Under the GMS, it said, total gold collected under Short Term Bank Deposit (STBD) and Medium and Long Term Government Deposit (MLTGD) is 2,891 kgs. Prime Minister Narendra Modi had launched these schemes on November 5.

There are 46 collection and purity verification centers (CPTCs), eight refiners and one jeweler certified/accredited by the BIS. Das further asked the banks to put concerted efforts to mobilise more gold under the GMS in order to achieve the scheme's objectives and increase the number of tripartite and bipartite agreements with CPTCs and refiners.

He directed the Banks and Indian Bankers’ Association (IBA) to rope in the eligible jewelers to act as CPTCs in the scheme especially in the areas where CPTC's presence is negligible. Banks were also directed to adopt a practical approach while asking for guarantees or collaterals from the CPTCs, it said.

It was decided that IBA in association with World Gold Council will design an exhaustive media campaign which will be supported by the government.


Read more about: sovereign gold bonds
Story first published: Tuesday, May 17, 2016, 9:19 [IST]
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