Investors can now use NSE’s online MF platform to subscribe Gold Bonds Fourth tranche has opened today

Investors can now use NSE’s online MF platform to subscribe Gold Bonds

Fourth tranche has opened today

 

Mumbai: Large number of investors and mutual fund players are set to benefit from National Stock Exchange of India Limited’s (NSE) electronic mutual fund platform which has started offering subscription to Sovereign Gold Bonds.

 

NSE’s online web based portal – called NMF II – is made for distributors to place mutual fund (MF) transactions on behalf of their clients. As of now, NMF II is the only online MF platform offering Sovereign Gold Bonds to investors. Recently, RBI has appointed NSE as ‘Receiving Office’ for collecting subscription bids from investors. The issue price of sovereign gold bond has been fixed at Rs 3,119 per gram. The fourth tranche of subscription has started today and will be open till 22. The investors have the flexibility to invest in demat or non-demat form in Sovereign Gold bonds through this platform.

 

NMF II is aimed at enabling the mutual fund distributors to improve their reach and allows registered distributors to transact in Mutual Funds through NSE’s infrastructure. Currently, NMF II platform is one of the largest online platforms in the country for MF investments with approximately 1800 members and 96000 investors registered on the platform.

 

Investors of sovereign gold bond not only benefit from change in value of gold but also earn a 2.75% interest which makes this product very unique. Besides, these bonds can also be used as collateral for bank loans. The tenor of these bonds is 8 years with exit options in 5th, 6th and 7th year also. These bonds are tradable through stock exchanges including NSE. While long term capital gains tax is applicable if it is sold after 3 years, the same will be zero if redeemed on maturity. Further, there is no TDS on interest paid on these bonds.

 

About The National Stock Exchange of India (NSE):

In its 20 years of existence, NSE has transformed the capital market, based on technology, innovation, high standards of corporate governance and management practices. NSE’s business practices and high level of integrity have earned it the trust of the financial markets worldwide. Besides being a platform of choice for all exchange traded financial products in India, NSE’s flagship index, Nifty50 is used extensively by investors in India and around the world as a barometer of the Indian capital markets. Since inception, the exchange has been covered extensively by global media and has won many accolades in recognition of its contribution in reforming the Indian securities market. For more information, please visit: www.nseindia.com

 

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