Fourth tranche of sovereign gold bond scheme from July 18

• The fourth tranche of the government’s sovereign gold bond scheme will open from July 18-22
• Sovereign gold bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold where the issue and redemption is carried out in cash but indexed to the value of the underlying gold. The bond is issued by theReserve Bank on behalf of the Government of India
• In the new tranche, the government is likely to lower the minimum investment in SGBs to 1gm from the current floor of 2 gm. Since this is the first tranche of the FY17 fiscal, a new maximum annual limit of 500 gm applies to investors. However, the government is likely to revisit this investment cap – either raise it or do away with it altogether – depending on the response to next week’s issue, the source quoted earlier added.

source: the hindubusiness line