SOVEREIGN GOLD BONDS

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Be it age old traditions of investing into gold, or be it investing into gold for an asset allocation, gold has been one of the popular investment options among the people since ages.

Investing in gold is much more easy and convenient now. With the Government of India's Sovereign Gold Bonds Scheme you can earn an assured interest rate eliminating risk and cost of storage.

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Sovereign Gold Bond Benefits

  • Hassle free : Ownership of gold without any physical possession. No risk of theft, burglary or impurities.

  • Tax treatment : The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.

  • Tradability : Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.

  • Transferability : Bonds shall be transferable by execution of an Instrument of transfer in accordance with the provisions of the Government Securities Act.


Sovereign Gold Bond Features

  • Eligibility : Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

  • Denomination : The bonds will be denominated in units of one gram of gold and multiples thereof.

  • Minimum size : Minimum permissible investment will be 1 gram of gold.

  • Maximum limit : Maximum limit of subscription shall be of 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

  • Interest rate : The investors will be paid Interest on the amount of initial investment at the rate notified by RBI for a particular tranche at the time of its launch and is payable semi-annually. Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961

  • Tenor : The tenor of the bond will be for a period of 8 years with an exit option from 5th year onwards to be exercised on the interest payment dates.

  • Benefit for online Application : The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

  • Redemption : Redemption price shall be fixed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.