NEWS AFFAIRS 7 : WHERE EVERY STORY HAS IT'S AFFAIR!
Last updated on August 20th, 2024 at 11:35 am
Sovereign Gold Bonds (SGBs): These are investment bonds issued by the government that are linked to the price of gold.
Trading at a Premium: SGBs are currently selling for more than their original price on the stock exchange.
Read more: Taxes on Gold: 10 Essential Tax Rules You Must Know Before Buying or Selling Gold in India
- SGBs offer tax benefits, which makes them more attractive to investors.
- They provide a steady interest rate (coupon rate) that appeals to investors.
- There is speculation that there might be fewer new SGBs issued in the future or none at all. This has increased their popularity and demand among investors.
In short, the combination of tax benefits, good returns, and the possibility of fewer future issues is driving up the price of SGBs.
Top 15 SGB Series: By August 14, 2024, the closing prices of the 15 most actively traded Sovereign Gold Bonds (SGBs) were 8% higher than their original reference prices.
In other words, these SGBs are currently trading at a price that is 8% above what they were originally priced at when they were issued.
Outperformance: The Sovereign Gold Bonds (SGBs) are currently performing better than expected, based on the reference rates published on ibjarates.com.
Issuance Details: Since 2015, the Reserve Bank of India (RBI) has issued 67 batches (tranches) of SGBs, totalling 14.7 crore (147 million) units.
In short, SGBs are doing well in the market and the RBI has issued a large number of these bonds over the years.
Trading Locations: All Sovereign Gold Bond (SGB) series are available for buying and selling on the secondary market.
You can trade these bonds on the cash segments of both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
In other words, you can buy and sell SGBs through these major stock exchanges.
Investors can buy or sell Sovereign Gold Bonds (SGBs) using their demat accounts, which are electronic accounts used to hold securities.
Future Demand: If no new SGBs are issued, more people might want to buy the existing bonds. This increased demand could lead to higher prices for these bonds compared to their original reference price.
In short, if there are no new SGBs released, the existing ones might become even more valuable due to increased demand.
Disclaimer: This information is for educational purposes only and not investment advice. Always consult with a financial advisor before making any investment decisions.
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