New Delhi: The Union Cabinet on Wednesday raised the annual investment limit in Sovereign Gold Bonds (SGBs) to 4 kg per individual from 500 gm and relaxed other norms to make them more attractive to buyers. More From Livemint »According to the statement, the investment limit per fiscal year has been increased to 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time. The ceiling on investment will not include the holdings kept as collateral by banks and financial institutions. The main objective of the scheme was to develop a financial asset as an alternative to physical gold. The target was to shift part of the estimated 300 tonnes of physical bars and coins purchased every year for investment into ‘demat’ gold bonds.

Source: Mint July 26, 2017 15:00 UTC