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Ch.1 · Comparing Financial Products · easy

A Sovereign Gold Bond (SGB) is issued by:

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EXPLANATION

Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India. They are denominated in grams of gold, carry a 2.5% per annum interest on the issue price, and have an 8-year tenure (exit allowed from 5th year).

A.The World Gold Council on behalf of Indian bullion dealers

B.The Reserve Bank of India on behalf of the Government of India [✓ Correct]

C.SEBI as part of its commodity market regulation

D.Nationalised banks as an alternative to physical gold

EXPLANATION

Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India. They are denominated in grams of gold, carry a 2.5% per annum interest on the issue price, and have an 8-year tenure (exit allowed from 5th year).

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