" /> Gold Scheme Garners Bids Worth Rs 156 cr Via Exchanges | Gold Silver Reports
Thursday, October 27th, 2016 2:37 AM
Breaking News

Home / Commodity News / Gold Scheme Garners Bids Worth Rs 156 cr Via Exchanges

Gold Scheme Garners Bids Worth Rs 156 cr Via Exchanges

Gold Scheme Garners Bids Worth Rs 156 cr Via ExchangesGold Silver Reports — The fourth tranche of sovereign gold bonds issued by the Reserve bank of India (RBI) on behalf of the central government saw bids worth `156 coming in through BSE and NSE. While NSE got 8,000 applications worth 341 kg mobilising `106 crore, BSE got 3,932 applications for 158.55 kg worth `49.56 crore. Put together, the exchanges got 11,932 applicants and sold 500 kg of gold worth `156 crore. 

Further data on mobilisation from other channels, such as banks, post offices and individual agents are yet to be released by the RBI.

Gold Scheme Garners Bids Worth Rs 156 cr Via Exchanges

This is the first time that stock exchange platforms mobilised money for sovereign gold bonds. In the earlier three issues of the sovereign gold bonds, the government had mobilised `1,325 crore. “The response was encouraging enough this time,“ said Shekhar Bhandari, busi ness head ­ Global Transaction Banking and Precious Metals, Kotak Mahindra Bank. “Moreover, many brokers were involved this time in taking the product to retail investors,“ he said.

Sovereign gold bonds enable in vestors to hold the yellow metal in paperless form. Investors can buy a single gram of gold to a maximum of 500 grams. The bonds are listed on the stock exchange and there is easy liquidity. Investors get an annual interest of 2.75% and there is no capital gains tax, if the bonds are held till maturity.

“With rising gold prices, exiting gold bond investors are gaining mark-to-market. This has helped earn investor confidence in the fourth tranche,“ said Bhandari .

A senior government executive said, the full collection figures are yet to arrive, but the response was not disappointing.

In the first three tranches of gold bonds issued during the financial year FY16, about 4.50 lakh investors purchased total bonds equivalent to 4,908 kg, amounting to about `1,320 crore.

On absolute basis, gold bonds have returned as much as 21%. The have returned as much as 21%. The government started selling gold bonds since November last year .

A senior official from an exchange said, the total collection may be the second largest among four tranches running into hundreds of crores.— Neal Bhai Reports

About Anil Yadav

Check Also

Gold Will Gain in 2017

Gold Silver Reports — Gold Will Gain in 2017 — Gold is set to advance by as much as …

We Make Ideas


Our site is objectively in letter and spirit, based on pure Technical Analysis. All other content(s), viz., International News, Indian Business News, Investment Psychology, Cartoons, Caricatures, etc are all to give additional ambiance and make the reader more enlightening. As the markets are super dynamic by very nature, you are assumed to be exercising discretion and constraint as per your emotional, financial and other resources. This blog will never ever create rumors or have any intention for bad propaganda. We report rumors and hear-say but never create the same. This is for your information and assessment. For more information please read our Risk Disclaimer and Terms of Use.

Technically Yours,

Team GoldSilverReports.com, New Delhi, INDIA