Sovereign Gold Bond Scheme was launched in 2015 by the Government.
This scheme offers people and entities to invest in government bonds denominated in gold values.
These bonds are government securities denominated in grams of gold.
The bonds are to be issued by RBI on behalf of Government of India.
They are substitutes for holding physical gold.
Investors have to pay the price for bonds in cash equivalent to the present value of gold (prevailing gold price).
They will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions.