SGB to be reintroduced with new features

 

The seventh part of Sovereign Gold Bond (SGB) is expected to receive good reaction as the money deposited in banks during the demonetisation drive is likely to be pumped into this scheme, feels analysts.

The scheme is being reintroduced in the market after a gap of four months, and is the first after the government’s note-ban initiative. Also, it is priced nearly 1.7% cheaper than the prevailing gold rate in the market.

“Gold is one of the best performing asset classes in 2017 and the yellow metal has gained investors’ interest once again. Dematerialised, tradeable and interest bearing make SGB an excellent instrument. It is definitely better than bars and coins,” said Shekhar Bhandari, business head for global transactions and precious metal at Kotak Mahindra Bank.