Gold bond scheme: Third tranche starts from March 8

The government had raised around Rs 1,045 crore through earlier two rounds of issuance of gold bonds.

By: ENS Economic Bureau | Published:March 5, 2016 1:51 am

After two rounds of issuance in November 2015 and January this year, the government will launch the third tranche of the gold bond scheme on Tuesday.

“Applications for the bond will be accepted from March 8, 2016 to March 14, 2016. The Bonds will be issued on March 29, 2016,” finance ministry said in a statement.

The government had raised around Rs 1,045 crore through earlier two rounds of issuance of gold bonds. The bonds will be sold through banks, Stock Holding Corporation of India Limited and designated post offices, the statement said.

The government had launched the first tranche of sovereign gold bond scheme in November for which it got subscription for 915.95 kg of gold worth Rs 246 crore. In January, it came out with the second tranche and received subscription for 3,071 kg gold amounting to Rs 798 crore.

Under the scheme, gold bonds are issued in denominations of 5 grams, 10 grams, 50 grams and 100 grams for a term of 5-7 years with a rate of interest to be calculated on the value of the metal at the time of investment. The scheme has an annual cap of 500 grams per person.

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