Q. With reference to the Sovereign gold bonds,consider the following:
Select the correct answer using the codes given below:
Q. With reference to the Sovereign gold bonds,consider the following:
Select the correct answer using the codes given below:
The correct option is B 1 and 2 only
Explanation:
Statement 1 is correct: The tenure of sovereign gold bonds is 8 years which can be canceled prematurely after 5 years on interest payment dates.
Statement 2 is correct: The Sovereign Gold Bond Scheme was launched under the Gold Monetisation Scheme in the year 2015. The Gold Monetisation Scheme was introduced to replace the existing Gold Deposit Scheme (GDS), 1999. The scheme facilitates gold depositors to earn interest of 2.25% annually for a short-term deposit of one year to three years.
Statement 3 is incorrect: As per the Foreign Exchange Management Act, 1999, an individual must be an Indian resident to meet the eligibility criteria under the Gold Bond Scheme. Foreign investors cannot invest in this scheme.
Statement 4 is incorrect: On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited. No physical gold is provided on maturity.
Explanation:
Statement 1 is correct: The tenure of sovereign gold bonds is 8 years which can be canceled prematurely after 5 years on interest payment dates.
Statement 2 is correct: The Sovereign Gold Bond Scheme was launched under the Gold Monetisation Scheme in the year 2015. The Gold Monetisation Scheme was introduced to replace the existing Gold Deposit Scheme (GDS), 1999. The scheme facilitates gold depositors to earn interest of 2.25% annually for a short-term deposit of one year to three years.
Statement 3 is incorrect: As per the Foreign Exchange Management Act, 1999, an individual must be an Indian resident to meet the eligibility criteria under the Gold Bond Scheme. Foreign investors cannot invest in this scheme.
Statement 4 is incorrect: On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited. No physical gold is provided on maturity.
