STOCK MARKET BSE NSE

Now, Inflation Indexed Bonds to cut gold rush

Published: 16th May 2013 10:01 AM  |   Last Updated: 16th May 2013 10:01 AM   |  A+A-

The government on Wednesday introduced Inflation Indexed Bonds (IIBs) in a bid to curb India’s appetite for gold.

The first tranche will be introduced on June 4 and will be for Rs 1,000- Rs 2,000 crore.

The IIBs will initially have a maturity period of 10 years and the total issuance for 2013-14 would be Rs 12,000- Rs 15,000 crore, the Ministry of Finance said in a statement.  After the first tranche, bonds will be issued on the last Tuesday of every month.

“Pursuant to the announcement in the Union Budget 2013-14, the Government of India in consultation with Reserve Bank of India (RBI) has decided to launch Inflation Indexed Bonds as instruments that will protect the savings of poor and middle classes from inflation and incentivise household sector to save in financial instruments rather than buy gold,” the Finance Ministry statement read.

While the first series of bonds will be open for all class of investors, the second series issue — beginning October — will be exclusively for retail investors.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp