Of the two gold schemes cleared by the government, the Sovereign Gold Bond (SGB) scheme may have a higher chance of succeeding and would potentially cut India’s gold import bill, says a Nomura report.
According to the Japanese brokerage firm, “the SGB scheme may have a higher chance of succeeding, as it is sovereign- backed and provides an attractive investment option for households that would like to hold gold as part of their investment portfolio and earn a coupon along the way”.