The Centre in consultation with the RBI has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode, the central bank said in a statement.
The first tranche of the bonds (2019-20 Series I) will open for subscription on June 3, while 2019-20 Series II will be available from July 8.
The opportunity is in the form of buying sovereign gold bond (SGB) from the secondary market.
In this episode of Managing Money with Moneycontrol, we tell you how and which asset class can help you make more money in the financial year 2018-19
The price of the new series of Sovereign Gold Bonds (SGBs), opening for purchase on Monday, has been fixed at Rs 2,934 per gram, the government said on Friday.
With short term weakness gold can be accumulated as a means of portfolio diversification.
As a principle of financial planning, investment in gold should be in the range of 5-10 per cent of one's financial portfolio.
Investment advisors say the bonds offer a good portfolio diversification option. They also offer the twin benefit of capital appreciation and regular returns, besides not having the risk of handling like physical gold.
National Stock Exchange (NSE) would conduct a mock session for new 'e-ETF' on e-IPO platform on January 13 and January 16-17 in order to familiarise with the new facility.
Be it jewellery, gold ETF or gold bonds, you should know the tax treatment before investing in gold.
RBI today said the Sovereign Gold Bonds (SGBs) issued on November 17 will become eligible for trading on stock exchanges from tomorrow.
"There is a good chance that the government will introduce another tranche of gold bonds towards the end of December or early January. It is best to wait for the issue and buy the bonds if one is interested in gold. SGB are safer and provide a nominal return," Hareesh V, Research Head, Geofin Comtrade Ltd said.
Investors in these bonds have been provided with the option of holding them in physical or dematerialised form.
Leading stock exchange BSE has begun conducting mock bidding session for the sixth tranche of Sovereign Gold Bonds (SGB) scheme, which is expected to be issued later this month by the government.
Besides, the exchange will conduct 'muhurat' trading session on account of Diwali Laxmi Pujan on October 30 from 1830 hrs to 1930 hrs.
"Applications for the bonds will be accepted from September 01, 2016 to September 09, 2016. The Bonds will be issued on September 23, 2016," the Finance Ministry said in a statement.
Leading bourse BSE on June 10 said Sovereign Gold Bonds (SGBs) will be traded under the 'G' group of equity cash segment along with other government securities
The Reserve Bank of India (RBI) and markets regulator Sebi have recently cleared the trading in the new instrument.
Reserve Bank on June 8 said sovereign gold bonds can be traded on stock exchanges from June 13
It pays to know the liquidity and taxation aspect while investing in gold while exploring newer options as they are cost efficient.
The second tranche of sovereign gold bonds and the pricing has been made more attractive as compared to the first tranche when the issue price was Rs 2,684 per gram.
Many investors are still attracted towards gold, and they keep looking for better options to invest in gold. With the launch of gold bonds, there is one more option available with the investor. Does that work for you?
Meanwhile Prime Minister Narendra Modi today launched three ambitious schemes to reduce the physical demand for gold and fish out 20,000 tonnes of the precious metal worth USD 800 billion lying idle with households.
Sovereign gold bonds will be issued on payment of money and would be linked to the price of gold and main idea is to reduce the demand for physical gold. The bonds will be issued on behalf of government by RBI. The borrowing through issuance of the bond will form part of market borrowing programme of government.
The bonds will be sold through banks and designated post offices and will be part of New Delhi's market-borrowing programme.