The Government announced a few changes in its Sovereign Gold Bond (SGB) Scheme recently. Which of the following is true regarding the changes?
A. There was the increase in the limit to 4 kg (from 0.5kg) for individuals, HUF and 20 kg for Trusts.
B. These bonds aim to help reduce India’s over dependence on gold imports.
C. The Government introduced flexibility in the scheme to design and introduce variants to cater to a cross-section of investors.
D. All of the above
Answer:D
The Government announced a few changes in its Sovereign Gold Bond (SGB) Scheme recently. Which of the following is true regarding the changes?
A. There was the increase in the limit to 4 kg (from 0.5kg) for individuals, HUF and 20 kg for Trusts. B. These bonds aim to help reduce India’s over dependence on gold imports. C. The Government introduced flexibility in the scheme to design and introduce variants to cater to a cross-section of investors. D. All of the above
Explanation: The sovereign gold bond was introduced by the Government in 2015. The Government introduced these bonds to help reduce India’s over dependence on gold imports. The scheme was also aimed at changing the habits of Indians from saving in physical form of gold to a paper form with Sovereign backing. The basic premise is that most Indians believe in gold as a time-tested and safe asset class and prefer it over other forms of investment.