KOCHI:The seventh tranche of Sovereign Gold Bonds (SGBs) will be open for subscription from February 27 to March 3. Under this, securities worth up to 500 grams of gold could be bought. The tenure of the bonds, which can be used as collateral for loans, will be for eight years with exit option from the fifth year onwards.
SGBs will be sold through banks, Stock Holding Corporation, designated post offices and stock. “Retail as well as institutional investors may invest in this scheme in large numbers,” said V K Vijayakumar, Investment Strategist, Geojit BNP Paribas Financial Services.
B Girirajan, managing partner of Bhima Jewellers, said, “The continuous introduction of gold bond schemes proves the confidence of the government in the scheme.” Investors will be compensated at 2.5 per cent per year payable semi-annually on the nominal value of investment.