Government Hikes Gold Bond Investment Limit To 4 kg Per Fiscal
The ceiling will be
counted on financial year basis and will include the SGBs purchased during
trading in the secondary market, an official statement said after the Cabinet
meeting here.
New Delhi:
The Cabinet on Wed raised
the annual investment limit in Sovereign Gold Bonds (SGBs) to four metric
weight unit per individual from five hundred metric weight
unit and relaxed fully completely different norms to form them many partaking to shoppers.
The ceiling square measure counted on time period basis and would possibly embody the SGBs purchased throughout mercantilism at intervals the secondary market, a politician statement said once the cupboard meeting here.
According to the statement, the investment limit per amount has been raised to four metric weight unit for people, four metric weight unit for Hindu Undivided Family (HUF) and twenty metric weight unit for trusts and similar entities notified by the government. from time to time.
The ceiling on investment won't embody the holdings unbroken as collateral by banks and monetary establishments. "SGBs square measure on the market 'on tap'. supported the consultation with NSE, BSE, banks and Department of Post, options of product to emulate 'on tap' sale would be finalized by Finance Ministry," it said.
To improve liquidity and tradability of SGBs, it said applicable market creating initiatives square measure devised.
Specific changes square measure created at intervals the attributes of the theme to form it many partaking, mobilize finances as per the target and crop the economic strains caused by imports of gold and crop this Account Deficit (CAD), it said.
Flexibility has been provide to the Finance Ministry to vogue and introduce variants of SGBs with entirely different interest rates and risk protection or pay-offs that may give investment alternatives to different class of investors, it said.
"Such flexibility square measure effective in addressing the weather of competition with new merchandise of investment, to the agitate terribly dynamic and customarily volatile market, macro-economic and fully completely different conditions like gold value," it said.
SGB theme was notified by the government. on day, 2015 once due approval of the cabinet. the foremost objective of the theme was to develop a financial quality as another to physical gold.
The target was to shift a locality of the derived 300 tones of physical bars and coins purchased per annum for investment into 'demat' gold bonds.
The target mobilization to a lower place the theme was Rs. 15,000 integer in 2015-16 and Rs. 10,000 integer in 2016-17. The number thus most attributable to inside the govt. account is Rs. 4,769 crore.
In view of but expected response to the theme, and considering its relating CAD and overall macro-economic health of the country, it had been felt necessary to form changes throughout this theme to form it successful.
The ceiling square measure counted on time period basis and would possibly embody the SGBs purchased throughout mercantilism at intervals the secondary market, a politician statement said once the cupboard meeting here.
According to the statement, the investment limit per amount has been raised to four metric weight unit for people, four metric weight unit for Hindu Undivided Family (HUF) and twenty metric weight unit for trusts and similar entities notified by the government. from time to time.
The ceiling on investment won't embody the holdings unbroken as collateral by banks and monetary establishments. "SGBs square measure on the market 'on tap'. supported the consultation with NSE, BSE, banks and Department of Post, options of product to emulate 'on tap' sale would be finalized by Finance Ministry," it said.
To improve liquidity and tradability of SGBs, it said applicable market creating initiatives square measure devised.
Specific changes square measure created at intervals the attributes of the theme to form it many partaking, mobilize finances as per the target and crop the economic strains caused by imports of gold and crop this Account Deficit (CAD), it said.
Flexibility has been provide to the Finance Ministry to vogue and introduce variants of SGBs with entirely different interest rates and risk protection or pay-offs that may give investment alternatives to different class of investors, it said.
"Such flexibility square measure effective in addressing the weather of competition with new merchandise of investment, to the agitate terribly dynamic and customarily volatile market, macro-economic and fully completely different conditions like gold value," it said.
SGB theme was notified by the government. on day, 2015 once due approval of the cabinet. the foremost objective of the theme was to develop a financial quality as another to physical gold.
The target was to shift a locality of the derived 300 tones of physical bars and coins purchased per annum for investment into 'demat' gold bonds.
The target mobilization to a lower place the theme was Rs. 15,000 integer in 2015-16 and Rs. 10,000 integer in 2016-17. The number thus most attributable to inside the govt. account is Rs. 4,769 crore.
In view of but expected response to the theme, and considering its relating CAD and overall macro-economic health of the country, it had been felt necessary to form changes throughout this theme to form it successful.
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