Question
Consider the following statements with respect to
Sovereign gold bonds (SGBs): 1.Sovereign gold bonds (SGBs) are issued for a fixed time, which is announced by the State Bank of India. 2.The minimum holding is 1 gram, and the maximum is 5 kg per investor per financial year. 3.Only individuals can invest the sovereign gold bonds. Which of the statement/s given above is/are not correct?Solution
SGBs are issued for a fixed time, which is announced by the Reserve Bank of India(RBI). A holding certificate is given to the investors after purchasing the bond. The minimum holding is 1 gram, and the maximum is 4 kg per investor per financial year. Individuals, as well as the Hindu Undivided Family (HUFs) can invest in the sovereign gold bond for as low as one gram and as much as 4kg. However, the maximum investment for trusts and similar businesses is 20kgs.
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