Money & Banking

Andhra Bank to sell Sovereign Gold Bond series III from Oct 24

G Naga Sridhar Hyderabad | Updated on January 16, 2018

The issue price for this tranche has been fixed Rs 2,957 per gram of gold.

Andhra Bank will open sale of Sovereign Gold Bond Scheme 2016-17 series-III for public subscription during October 24-November 2, 2016 at all its branches.

RBI has notified 2.5 per cent interest per annum on the initial investment based on nominal value.

The nominal price of gold, which is arrived based on simple average of closing price gold as published by IBJA in the preceding week to the issue (Monday to Friday).

The issue price is fixed Rs 50, less than the nominal price. The issue price for this tranche has been fixed Rs 2,957 per gram of gold.

The bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions who can apply for gold bonds (Minimum one gram and maximum of 500 grams).

The tenor of the bonds is eight years with provision of premature cancellation after five years.

The Gold Bond Scheme enables people to invest in gold without physically buying the gold and receive money equivalent to the market value of gold as determined by RBI at the time of redemption besides earning interest on the invested amount semi-annually.

Published on October 22, 2016

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