Stock exchanges mobilise Rs 156 crore, sell 500 kg gold bonds in Tranche 4

MUMBAI: The fourth tranche of sovereign gold bonds issued by the Reserve bank of India (RBI) on behalf of the central government saw bids worth Rs 156 coming in from BSE and NSE. While NSE got 8,000 applications worth 341 kg mobilizing Rs 106 crore, BSE got 3932 applications for 158.55 kg worth Rs 49.56 crore. Put together both the exchanges got 11,932 applicants and sold 500 kg of gold worth Rs 156 crore. Further data of mobilization from other channels, such as banks, post offices and individual agents is yet to be released by the RBI for the fourth tranche.

This is the first time that stock exchange platforms mobilized money for sovereign gold bonds. In the earlier three issues of the sovereign gold bonds, the government had mobilized Rs 1325 crore.

Sovereign gold bonds enable investors to hold the yellow metal in paperless form. Investors can buy a single gram of gold to a maximum of 500 grams. The bonds are listed on the stock exchange and there is easy liquidity. Investors get an annual interest of 2.75% and there is no capital gains tax, if the bonds are held till maturity.