Opportunities of investing in Sovereign Gold Bonds

Resource Person: Dr. Sachin Napate

Duration: 11.00 am – 5.00 pm

Date: 14^th August, 2020

Venue: Smart room

Participants:20

Objectives:

1. To enable faculty to know the opportunities of investing in gold bonds
2. To Facilitate faculty to take informed decisions

Brief:
Dr. Sachin Napate gave introduction of the gold bond scheme issued by the government. He gave the brief history about Sovereign Gold Bond Scheme. It was launched by Govt in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by RBI in consultation with GOI. RBI Notifies the terms and conditions for the scheme from time to time. The subscription for SGB will be open as per following calendar. The rate of SGB will be declare by RBI before every new tranche by issuing a Press Release.

Talking about features of Gold bonds he said that it is issued by Reserve Bank India on behalf of the Government of India. The Bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram. The tenor of the Bond will be for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates. Minimum permissible investment will be 1 gram of gold. Payment for the Bonds will be through cash payment (up to a maximum of Rs. 20,000/-) or demand draft or cheque or electronic banking. The Gold Bonds will be issued as Government of India Stocks under Government Security Act, 2006. The investors will be issued a Holding Certificate for the same.

He said that Sovereign Gold Bonds are very good venue to invest because it is the best tool to beat inflation. These bonds are eligible for conversion into DEMAT form. All the branches of the State Bank of India are authorised to accept the subscription. The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value. Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.

Dr. Sonali Saha, Associate Professor thanked the resource person and all the participants present.