Trade in gold bonds begins, prices up 7 per cent
Sovereign gold bonds provide investors a choice to diversify portfolio without the need to buy gold in physical form.
Mumbai: Sovereign gold bonds on Mon-day made a debut on the stock exchanges and closed the first day of the trade with handsome gains of over seven per cent.
The bonds were listed at Rs 2,930 per gram and finally closed at Rs 3,147.75 per gram, surging 7.43 per cent from the opening price on the National Stock Exchange. During the day, the bonds touched a high of Rs 3,258 per gram, up 10.38 per cent. Turnover at both NSE and BSE stood at Rs 23.18 lakh, while traded volume was 736.
Sovereign gold bonds provide investors a choice to diversify portfolio without the need to buy gold in physical form. The sovereign gold bond scheme was announced by the government on October 30, 2015. These bonds are issued by the RBI on behalf of the government.
The tenure of the bonds is eight years with an exit option from fifth year. The bonds will carry an interest rate of 2.75 per cent (fixed rate) per annum on the amount of initial investment. Interest is to be paid half-yearly and the last interest will be payable on maturity, along with the principal.