Reserve Bank to issue fourth tranche of gold bonds

The Reserve Bank of India (RBI) on Thursday said it would issue the fourth tranche of sovereign gold bonds on August 5.

This is the first gold bond issue under the Sovereign Gold Bond scheme, which can be purchased on both the BSE and the National Stock Exchange.

Application for the bonds will be accepted on July 18- 22, the central bank said.

The terms and conditions of the bonds remained same as that of the previous issuances. The bond will be denominated in multiples of grammes and will have a tenor of eight years, with an exit option at the end of the fifth year. The minimum permissible investment limit would be one gram and the maximum investible limit was 500 g per person per financial year. In the first three tranches, the government mobilised Rs 1,320 crore, or about 5,000 kg of gold equivalent, from about 450,000 investors.

The central bank would announce the price of the gold bond - the average of the week's daily closing prices - on Friday. Based on Thursday's close, the average works out to Rs 3,127 per gramme.