Consider the following statements about Sovereign Gold Bond SGB 1 SGBs are government securities den...........

Economic Affairs Investment Models

Download Solution PDF

Consider the following statements about Sovereign Gold Bond (SGB):

1.SGBs are government securities denominated in grams of gold.

2.The Bond is issued by SEBI on behalf of Government of India.

3.Investors are assured of the market value of gold at the time of maturity and periodical interest.

Which of the statements given above is/are correct?

3 only

2 and 3 only

2 only

छोटे Courses बड़े Results

Master Investment Models

Prepare through Micro-courses

Try Now

Explanation:

2 and 3 only

Statement 1 is incorrect. Sovereign Gold Bonds (SGBs) are indeed government securities, but they are not denominated in grams of gold. Instead, they are denominated in multiples of grams of gold, which means investors can buy bonds in multiples of grams of gold.

Statement 2 is correct. Sovereign Gold Bonds are issued by the Government of India, not by SEBI (Securities and Exchange Board of India).

Statement 3 is correct. Investors are assured of the market value of gold at the time of maturity, and periodic interest is also provided on the investment amount.

Report error

Submit Error