Trading in SGB's 2nd, 3rd tranche on NSE to start from Monday

Trading in second and third tranche of sovereign gold bonds on NSE will begin from Monday, a move that will provide investors wider choice to diversify their portfolio without the need to buy the metal in its physical form.
Trading in the first tranche of sovereign gold bonds (SGB) started on June 13.
SGB -- the government securities denominated in grams of gold -- offers an alternative to holding gold in physical form. The scheme was announced by the government on October 30, 2015.
The bonds will carry an interest rate of 2.75 per cent (fixed rate) per annum on the amount of initial investment.

"The second and third tranche of sovereign gold bonds shall be available for trading with effect from August 29, 2016," National Stock Exchange (NSE) said in a circular issued today.
So far, four tranches of the bonds have been issued.

These bonds are issued by the Reserve Bank of India on behalf of the government.
The two exchanges BSE and NSE have been appointed by Securities and Exchange Board of India for acting as receiving office for collecting subscription bids from investors.
Funds raised through the bonds will form part of the government's market borrowing programme.
India imports about 1,000 tonnes of gold every year and it is the second-biggest constituent of the import bill after crude oil.

Gold imports showed a decline of about 8 per cent to USD 31.72 billion in 2015-16 due to weak global prices, which is expected to keep a lid on the country's current account deficit. Gold imports stood at USD 34.38 billion in 2014-15.