Next SGB tranche mid-October
The next Tranche of Sovereign Gold Bond (SGB) Scheme is expected around the third week of October, 2016, following on the success of Fifth Tranche SGB which is expected to raise Rs. 820 Crore from 2.36 tonnes of gold offered September 1-9, 2016.
The amount realised through the 5th Tranche of Sovereign Gold Bond (SGB) Scheme is expected to cross Rs.820 crore. This was mobilised through over 2.00 lakh applications representing around 2.37 tonnes of gold.
The issue price of 5th tranche SGB worked-out to a still higher level Rs.3,150 per gram of gold based on the average of closing price of gold of 999 purity for the week August 22 to 26, 2016, as published by the India Bullion and Jewellers Association Ltd. (IBJA).
The Government will come-up with more tranches in 2016-17.
The SGB scheme was launched as an alternative mode of investment to physical gold in November 2015.
The SGB aims to reduce demand, including through imports, for physical gold, and in process reduce India’s Current Account Deficit.
Three tranches of SGB scheme were floated in 2015-16. In the current financial year two tranches have been launched – 4th tranche from July 18-22, 2016 and 5th tranche from September 01-09, 2016.
The total subscription in first 4 tranches was Rs.2,239 Crore corresponding to 7.85 tonnes of gold. fii-news.com
