The RBI accepted Rs 1,054 crore worth of green bonds at the auction, against the notified amount of Rs 5,000 crore
Officials may argue that the scheme has outlived its purpose since India no longer has a troublesome current-account deficit
Scheme said to have outlived its purpose of reducing physical gold imports
Indications were that decision on this would be taken in September
A key reason for the current delay is that SGBs have become an expensive borrowing route for the government
The July Budget reduced the import duty on gold from 15 per cent to 6 per cent, lowering input costs for jewellers and deterring smugglers
Understandable if govt decided not to bear exchange and capital appreciation risks on SGBs anymore, but this would be a pity for investors who would no longer have this option to balance portfolios
Recently, SGB investors have expressed concerns due to market fluctuations and the government's decision to lower the customs duty on gold which may result in reduced returns on their investments
Sovereign gold bonds have caught the fancy of investors who bought Rs 27,031 crore worth of the bonds last fiscal, an amount more than four times invested in 2022-23 on the prospects of higher returns and tax benefits. The bonds bought by investors represented a whopping 44.34 tonne of gold during 2023-24. In 2022-23, Sovereign Gold Bonds (SGBs) representing 12.26 tonne of gold were purchased for Rs 6,551 crore. "The aggregate sum raised during 2023-24 amounted to Rs 27,031 crore (44.34 tonne)," said the annual report of Reserve Bank, which issues the bonds on behalf of the central government. During the fiscal ended March 2024, the bonds were issued through four tranches. Since the inception of SGB scheme in November 2015, a total of Rs 72,274 crore (146.96 tonne) has been raised through 67 tranches. The price of 24 karat per 10 gram of gold has gone up from about Rs 62,300 to Rs 73,200 in one year. SGBs are government securities denominated in grams of gold. They are substitute
The Reserve Bank of India (RBI) issues SGBs on behalf of the government
The price of one kilogram of silver in Delhi, Mumbai, and Kolkata stood at Rs 75,500
The government launched the first SGB in November 2015, and the first two issues have matured giving significantly high tax-free returns to investors
Sovereign gold bonds can be the best bet for those looking to protect their investments during market downturns.
The reason for the good response in FY21 and FY22 was because of the lockdown and as the jewellery stores were not open while SGB buying was possible through net banking
The bonds can be bought through agents or receiving officers (ROs), and applications must be submitted to branches during the weeks of subscription
Sovereign Gold Bond Scheme was launched by the government in November 2015, under Gold Monetisation Scheme
Sovereign Gold Bond interest rate: These bonds bear interest at the rate of 2.50% per annum on the amount of initial investment. Interest is credited semi-annually to the bank account of the investor
The Reserve Bank of India (RBI) on Friday announced that the issue price for the next tranche of Sovereign Gold Bond has been fixed at Rs 6,199 per gram and will open for subscription on December 18 for five days. The Sovereign Gold Bond (SGB) Scheme 2023-24 - Series III will be open for subscription during December 1822, 2023. The SGBs will be sold through scheduled commercial banks (except small finance banks, payment banks and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, National Stock Exchange of India Limited and Bombay Stock Exchange Limited. In a statement, the RBI said the nominal value of the bond based on the simple average closing price for gold of 999 purity works out to Rs 6,199 per gram. The central government, in consultation with the Reserve Bank, has also decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and
The investors will receive an interest rate of 2.50 per cent per annum payable semi-annually on the nominal value. No capital gains tax has to be paid if redemption is done after maturity.
The government will issue a tranche of sovereign gold bonds (SGBs) this month, and one more in February. The date for subscription for 2023-24 Series III is December 18-22, 2023, while for Series IV is scheduled for February 12-16, a finance ministry statement said Friday. The Series I was open for subscription during June 19-23 and Series II during September 11-15. The SGBs will be sold through scheduled commercial banks (except small finance banks, payment banks and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, National Stock Exchange of India Limited and Bombay Stock Exchange Limited. Price of SGB will be fixed in Indian rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will b