The government has announced five more tranches of Sovereign Gold Bond Scheme (SGBS).
While the first issue will open for subscription on October 21 and close on October 25, the next four tranches will be offered in December 2-6, January 13-17, February 3-7 and March 2-6.
Only Indian residents and institutions can buy these bonds. SGBS will be issued in denominations of 1 gram of gold.
While the minimum permissible investment will be 1 gram of gold, an individual cannot buy more than 4 kg of gold bonds per year.
These bonds will have a maturity period of eight years with a lock in period of five years. The investors will get compensation at a fixed rate of 2.5% a year on the amount of the initial investment. The interest will be paid semi-annually.
IFAs registered on stock exchange platforms like NSE NMF II and BSE Star MF can earn a healthy commission upto 1% on SGBS.
