Sovereign gold bonds (basically, investments in paper gold) were created in 2015 to curb rising imports of the precious metal at the time.
Investors poured Rs 72,274 crore into the 67 tranches of government bonds issued by the Reserve Bank of India (RBI) on behalf of the government. Four of them have fully matured, meaning the money has been returned to those who bought the bonds.
In a previous analysis, we showed how Investors doubled their moneypayable to the Public Treasury, on the first four tranches issued between 2015 and 2017.
He Latest budget documents showed that the government owes investors ₹85,000 crore, which has increased almost nine times from less than ₹10,000 crore as of the end of March 2020.
Even before an official announcement, the market seems prepared. Demand for sovereign gold bonds has seen a sharp increase in secondary markets. paying up to 8% more than the reference price set by the government from August 14.
All SGB series are listed in the secondary market and are available for trading in the cash segments of both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) and can be bought and sold through demat accounts. However, capital gains tax will be levied on the profits made on the sale of SGB through the stock exchanges.
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