Day: 5 March 2016

Sovereign Gold Bonds- 2016 Series-II (3rd Tranche) The investment in Sovereign Gold Bonds, 2016  is now open for subscription from March 8, 2016 to March 14, 2016. (Government of India vide its Notification F.No. 4(19)-W&M/2014 dated March 04, 2016).  The bonds will be issued on March 29, 2016. The issuance of Sovereign Gold Bonds in this tranche will be done at Rs 2,916 /gm of gold. This is the 3rd time, the subscription is open for Sovereign Gold Bonds (SGB).  Previous subscription:   In Nov 2015 (Issue price - Rs 2684 / gm)  - got subscription for 915.95 kg of gold worth Rs 246 crore In Jan 2016 (Issue price - Rs 2600 / gm)  - received subscription for 3,071 kg gold amounting to Rs 798 crore.  In my previous post, I have provided more details around Sovereign Gold Bonds 0 its...

 Sovereign Gold Bond (SGBs) are government securities denominated in grams of gold that also provides interest of 2.75% p.a. on top of price of gold. They are substitutes for holding physical gold. The Bond is issued by Reserve Bank on behalf of Government of India.   How the Sovereign Gold Bond Scheme works? For each gram of gold, you can buy 1 unit of SGB. The rate is fixed by the government at the time of issuing the bond You will get interest @ 2.75% p.a. Interest is paid every six months. On maturity, you will get the price of gold at that point of time You can purchase a minimum of 2 gms (2 units) and a maximum of 500 gms (500 units) of Gold bonds every financial year The bonds will mature in 8 years. However, the investors have an option to exit after the 5th This means, aft...

NABARD is offering tax-free bonds to raise Rs 3500 crore at the rate of 7.29% (10 years) and 7.64% (15 years) to retail investors. The rural focused development lender has already raised Rs 1500 crore via private placement. The issue will open on March 9 on First-come-first serve basis. Size of the Issue – NABARD is authorized to raise Rs. 5,000 crore from tax free bonds this financial year.  The company has already raised Rs. 1500 crore through private placement. The company will raise Rs. 3500 crore in this issue. The issue will be open during 09-March-2016. Other open TAX FREE Bond - IRFC 7.64% Tax free bond (10-14 March 2016) NABARD Tax Free Bonds  Details Series I Series II Tenor 10 Years 15 years Interest Paid Annual Annual Coupon Rate 7.29% 7.64% Effective Pre-Tax ...