Fifth tranches of Sovereign Gold Bonds is open for subscription

The fifth tranche of Sovereign Gold Bonds is open for subscription from today until the 7th of August, 2020. The issue price is Rs. 5,284 per gram including an Rs. 50 discount for online applications.
These bonds are a substitute for holding physical gold. Each of those tranches will be kept open for a specified period for investors to buy through banks, Stock Holding Corporation of India Limited (SHCIL), designated Post Offices and recognized Stock Exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange. The holder of an SGB can also borrow against the security of SGB or offer it as collateral security for any loan. Banks can create a pledge, hypothecation, or lien against the security (in accordance with the provisions of section 28 of the G-Sec Act 2006/ chapter VII of G.Sec Regulations, 2007) without any restriction.

The advantage of these bonds compared to gold jewelry is as under.

Surendra Naik

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Surendra Naik

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