India to issue fifth Tranche of Sovereign Gold Bonds scheme on 01 Sept

INDIA August 30 2016 2:47 PM     

MUMBAI (Scrap Register): The  government is set to issue the fifth tranche of the sovereign gold bond scheme  on 1 September.

The tenure of the bond will be for a period of eight  years with an exit option from the fifth year to be exercised on the interest  payment dates.

The bonds are eligible for conversion into demat form, the  government said in a statement.

The gold bonds will be sold through  banks, Stock Holding Corporation of India Ltd (SHCIL), designated post offices  and recognised stock exchanges such as National Stock Exchange of India Ltd and  Bombay Stock Exchange, either directly or through agents.

The investors  will be compensated at a fixed rate of 2.75% per annum payable semi-annually on  the initial value of investment. These bonds will be tradable on stock exchanges  or negotiated dealing system-order matching (NDS-OM) within a fortnight of the  issuance on a date as notified by the Reserve Bank of India (RBI).