MUMBAI, Aug 31: The government is set to issue the fifth tranche of the sovereign gold bond scheme on September 1. The tenure of the bond will be for a period of eight years with an exit option from the fifth year to be exercised on the interest payment dates. The bonds are eligible for conversion into demat form, an RBI release said. The gold bonds will be sold through banks, Stock Holding Corporation of India Ltd (SHCIL), designated post offices and recognised stock exchanges such as National Stock Exchange of India Ltd and Bombay Stock Exchange, either directly or through agents, the statement said. The investors will be compensated at a fixed rate of 2.75 percent per annum payable semi-annually on the initial value of investment. These bonds will be tradable on stock exchanges or negotiated dealing system-order matching (NDS-OM) within a fortnight of the issuance on a date as notified by the Reserve Bank of India (RBI). The bonds will be eligible for statutory liquidity ratio (SLR) purposes for banks that sell them. (UNI)
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