Question

Which of the following facts is/are true about SGBs (Sovereign Gold Bond)?

(I) SGBs are Government Securities Denominated in INR

(II) SGBs are issued by RBI on behalf of GOI

(III) SGBs can be traded on Stock Exchanges

(IV) SGBs can be bought from an authorized Stock Broker.

• A. Only II & III
• B. Only I, III & IV
• C. Only I, II & III
• D. Only II & IV
• E. All of them

Answer 1

The correct option is D

Only II & IV

Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold. They are the substitute for investment in physical gold. To buy the bond, an investor has to pay the issue price in cash to an authorised SEBI Broker. These bonds are issued by the Reserve Bank of India on behalf of the Government of India and are traded on stock exchange.