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Fourth tranche of Gold Bond scheme to open by June-end

The SGB scheme was launched in November, 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings used for purchase of gold, into financial savings.

By: PTI | New Delhi |
May 31, 2016 5:24:51 pm
finance ministry, shaktikantadas, gold bonds, Short Term Bank Deposit, Medium Term Bank Deposit, Long Term Bank Deposit, Gold Monetisation Scheme, narendra modi, Gold Monetisation schemes, gold, gold bond, arun jaitley, latest news, black money, cabinet, cabinet news There were some issues with regard to demat of the gold bonds which were being resolved.

The fourth tranche of Sovereign Gold Bond (SGB) scheme, which has received a lukewarm response so far, will be launched by June-end and trading in these instruments will begin within the next couple of months.

“We are working on that (SGB). Hopefully, it should hit the market by end of next month,” Reserve Bank of India Deputy Governor H R Khan told reporters here today.

SGB, which is aimed at reducing the demand for physical gold, has not been receiving good response from investors and the government has been trying to improve the scheme to make it more attractive.

[related-post]There were some issues with regard to demat of the gold bonds which were being resolved, Khan said.

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On a question on trading of the gold bonds, he said, “it should happen in the next couple of months”.

The third tranche of SGB, which was launched on March 8, received a lukewarm response with the government getting a subscription for 1,128 kg gold, amounting to Rs 329 crore -less than the half it got in the previous round. There were around 64,000 applicants.

In the second tranche (January 18 to 22), about 3.16 lakh applications were accepted for a total subscription of 2,872.3 kg of gold amounting to Rs 746.80 crore.

During the first tranche issued in November 2015, 62,169 applications were accepted for a total subscription of 915.95 kgs amounting to Rs 246.20 crore by banks and post offices.

The government had so far received subscription for Rs 4,916.253 kg of gold amounting to about Rs 1,322 crore.

The SGB scheme was launched in November, 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings used for purchase of gold, into financial savings.

Earlier this month, Economic Affairs Secretary Shaktikanta Das reviewed the progress of the gold bond scheme as well as the gold monetisation scheme.

It was decided to ask the banks to put concerted efforts to market the twin gold schemes with a view to help the government to achieve the objectives of the schemes.

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