Economy

Sovereign gold bonds: strong response to 4th tranche

K.R. Srivats New Delhi | Updated on January 18, 2018 Published on July 30, 2016

gold

Amount realized stood at Rs 919 crore, highest ever yet:finmin



The Finance Ministry on Saturday said that the collections under fourth tranche of sovereign gold bonds scheme reached a new high of Rs 919 crore.

This is the best collections performance as yet with the previous highest being Rs 746 crore in the second tranche when the issue price was only Rs 2,600 per gram of gold.

The issue price of the Sovereign Gold Bond in the 4th tranche was fixed at Rs 3,119 per gram of gold. Over 1.95 applications representing around 2.95 tonnes of gold were received for the fourth tranche, an official release said.

The total subscription in first three tranches was Rs 1,318 crore corresponding to 4.9 tonnes of gold, the release added.

Post the 2015-16 budget announcement, the sovereign gold bond (SGB) scheme was launched in November 2015 as an alternative to physical gold.

The aim of this scheme was to reduce demand, including through imports, for physical gold, and in process reduce India's current account deficit. Three tranches of SGB scheme were floated in 2015-16. This financial year too from July 18-22 2016, the government in consultation with RBI launched the fourth tranche of SGB.

Published on July 30, 2016
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