Sovereign Gold Bond Scheme (SGB) was launched by Government of India in 2015. Every year country imports tons of gold to offset the domestic demand which results current account deficit. This helps maintaining the country’s Current Account Deficit within sustainable limits. Let’s elaborately discuss What is Sovereign Gold Bond Scheme.
Table of Contents
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
The Bond is issued by Reserve Bank of India on behalf of Government of India.
Bonds are sold through:
The bond is tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.
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