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Gold bond scheme: Govt realises record Rs 919cr in 4th tranche

The issue price in the fourth tranche of the Sovereign Gold Bond was Rs 3,119 per gram of gold.

m_id_430602_gold_prices759 SBI, NSE, Bank of India, ICICI Bank and HDFC Bank were among the top five receiving offices for the scheme.

The government has garnered  Rs 919 crore under the fourth tranche of the Sovereign Gold Bond scheme,the highest ever collection so far under the scheme.

“The amount realised through the 4th tranche, at around Rs 919 crore, is the highest achieved as yet. The previous highest was Rs 746 crore in the 2nd tranche when the issue price was only Rs 2,600 per gram of gold. This was mobilised through over 1.95 lakh applications representing around 2.95 tonnes of gold,” a finance ministry statement said.

The issue price in the fourth tranche of the Sovereign Gold Bond was Rs 3,119 per gram of gold.

These numbers are likely to be revised upwards as applications received on the last day are yet to be updated completely, the statement said.

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SBI, NSE, Bank of India, ICICI Bank and HDFC Bank were among the top five receiving offices for the scheme. The total subscription in the first three tranches of the scheme was Rs 1,318 crore corresponding to 4.9 tonnes of gold.

The ministry said it will come with more tranches of the scheme in the current financial year depending on the investor response.

In Union Budget for 2015-16, Sovereign Gold Bond scheme was proposed as an alternative to physical gold and the scheme was launched in November 2015 with an aim to reduce physical demand for gold including through imports.

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Three tranches of the scheme were floated in 2015-16 and the fourth tranche was launched from July 18-22, 2016 by the government in consultation with the RBI.

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In order to boost subscription, the minimum subscription limit was reduced from 2 gm to 1 gm this time. The Budget for 2016-17 provided exemption to the capital gains tax arising on redemption of the Sovereign Gold Bond scheme to an individual. Bourses National Stock Exchange and Bombay Stock Exchange were notified as additional receiving offices along with allowing trading of gold bonds.

Gold reaches 31K-mark after 29 months 

After nearly 29 months, gold prices spurted to Rs 31,340 per 10 grams surging Rs 540 in the Delhi bullion market on Saturday, tracking a firm trend overseas amid increased buying by jewellers at the domestic spot market.

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Bullion traders said sentiment bolstered after gold gained overseas as the dollar weakened and the US economy grew less-than-expected in the second quarter, boosting demand for safe-haven assets.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity soared Rs 540 each to Rs 31,340 and Rs 31,190 per 10 grams, respectively, a level last seen on February 26, 2014, when it had stood at Rs 31,530. Sovereign, also shot up by

Rs 300 to Rs 24,300 per piece of eight grams. Two weeks ago, in futures trading at the Multi Commodity Exchange (MCX), gold for delivery in August last quoted higher by Rs 581 or 1.91 per cent to Rs 31,025 per 10 grams. ENS

 

First published on: 31-07-2016 at 02:30:22 am
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