Sovereign Gold Bonds (SGB):
1. are issued by RBI
2. are tradable on stock exchanges
3. assure market value of gold at time of maturity plus periodical interest
Which of the above statements is/are correct?
SGBs are government securities issued by Reserve Bank on behalf of Government of India. The bonds are excellent substitutes for holding physical gold. Investors are assured of the market value of gold at the time of maturity and periodical interest, but there may be a risk of capital loss if the market price of gold declines with the time period.
This question is a part of GKToday's Integrated IAS General Studies Module