The Reserve Bank has issued five tranches of Sovereign Gold Bonds (SGB) for a total value of Rs 3,060 crore till date.
Investors in these bonds have been provided with the option of holding them in physical or dematerialised form.
The requests for dematerialisation have largely been processed successfully.
RBI issued the bonds in consultation with the government.
Background:
SGB, an alternative mode of investment to physical gold, was launched in November last year. It provides investors a choice to diversify portfolio without the need to buy the metal in physical form.
There were more than 2 lakh applications for the fifth tranche of SGB.
The SGB, under the fifth tranche, issued last month will be eligible for trading on stock exchanges from tomorrow.
SGB earns an interest rate of 2.75 per cent per annum, semi-annually payable on initial investment.
