The Reserve Bank of India (RBI) on Thursday said that Sovereign Gold Bonds (SGBs) scheme Series III held in dematerialised form shall be eligible for trading on stock exchanges from December 09, 2016. 

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RBI will issue the bonds on behalf of Government of India, and will sell it via banks, Stock Holding Corporation of Idia Limited (SHCIL), designated Post Offices, and recognised Stock Exchange.

Tenor of the Bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates.

Maximum amount of subscription made by any entity shall not be more than 500 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained.

Minimum permissible investment will be 1 gram of gold.

Issue price shall be Rs 50 per gram less than the nominal value.