7th tranche of Sovereign Gold Bonds opens today

New Delhi: The seventh tranche of Sovereign Gold Bonds (SGB) is open for subscription from Monday, giving investors a bigger choice to diversify their portfolio without having to buy the metal in physical form.

The bonds will be allotted to eligible applicants on March 17, 2017.

NSE and BSE have been appointed by Sebi for acting as receiving office for collecting subscription bids from investors. SGB scheme was launched in November 2015 as an alternative mode of investment to physical gold.

So far, the government has come out with six tranches of the SGB.

The minimum investment size in the secondary market will be 1 gm and the maximum will not exceed 500 grams per person per fiscal year.

A self-declaration to this effect will be obtained. In case of joint holding, the investment limit of 500 grams will be applied to the first applicant only.

The tenure of the bond is eight years with an exit option from fifth year to be exercised on the interest payment dates.

The Reserve Bank issues bonds on behalf of the government.

With Agency Inputs