Consider the following statements regarding Sovereign Gold Bonds SGB 1 The investment...........

Economic Affairs Financial Markets

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Consider the following statements regarding Sovereign Gold Bonds (SGB):

1. The investment limit per fiscal year for individual is 4 kg.

2. The investment limit per fiscal year for Trust is 25 kg.

Which of the statements given above is/are incorrect:

1 only

2 only

Both

None

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Explanation:

Following specific changes in the scheme have been approved:
?   The investment limit per fiscal year has been increased to 4 kg for individuals, 4 Kg for Hindu Undivided Family (HUF) and 20 Kg for Trusts and similar entities notified by the Government from time to time.
?   The ceiling will be counted on financial year basis and will include the SGBs purchased during the trading in the secondary market.
?   The ceiling on investment will not include the holdings as collateral by Banks and Financial institutions.
?   SGBs will be available 'on tap’. Based on the consultation with NSE, BSE, Banks and Department of Post, features of product to emulate 'On Tap' sale would be finalised by Ministry of Finance.
?   To improve liquidity and tradability of SGBs, appropriate market making initiatives will be devised. Market makers could be commercial banks or any other public sector entity, such as MMTC or any other entity as decided by Gol.
?   The Government may, if so felt necessary, allow higher commission to agents.