Second tranche of India’s gold bonds sees higher investor interest

The subscription for the second tranche of gold bonds was sharply higher than the first round, indicating the scheme was gradually picking up amongst investors with an increased awareness and clarty about its provisions, the government said.

A finance ministry statement said 316,000 applications were received by banks for a total subscription of 2,790 kg of gold valued at 726 crore rupees. The actual figure may vary because the final numbers were still being compiled, it added.

The first tranche issued in November last year got a lukewarm response with banks receiving only 62,169 applications for a total subscription of 915.953 kg of gold valued at 246.20 crore rupees.

The new Bonds will be issued on February 08, 2016, the statement said.

The objective of the scheme is to reduce the demand for physical gold and shift a part of the domestic savings used for purchase of gold, into financial savings.

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