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What is Sovereign Gold Bond Scheme
Launched by the Government of India in November 2015 under the Gold Monetisation Scheme, the Sovereign Gold Bond (SGB) Scheme has emerged as a popular investment avenue. Governed by the Reserve Bank of India (RBI) in consultation with the Government of India (GOI), the scheme offers a unique opportunity for investors to participate in the gold market without the need for physical possession.
Sovereign Gold Bonds are government securities denominated in grams of gold. Acting as substitutes for physical gold, these bonds are issued in tranches by the RBI, with terms and conditions regularly updated by the central bank. The rate of the SGB is declared by the RBI before each new tranche through an official Press Release.
Investors, both individuals and institutions, pay the issue price in cash, and upon maturity, the bonds are redeemed in cash. This setup allows for seamless participation in the gold market without the challenges associated with physical storage and security.
Advantages of Sovereign Gold Bond Scheme
Sovereign Gold Bonds come with a host of advantages, making them an attractive investment option.
Firstly, being in demat form eliminates the need for physical paperwork, offering a modern and convenient approach.
Secondly, these bonds represent actual units of gold, providing investors with the benefits of gold price escalation. As gold prices rise due to international demand or fluctuations in currency exchange rates, investors stand to gain.
Another significant advantage is the ability to pledge Sovereign Gold Bonds as collateral for loans, enhancing their liquidity. Furthermore, capital gains from the final sale of the bonds are exempt from taxes, offering a tax-efficient investment avenue. Adding to the attractiveness is the 2.5% interest provided by the government, offering a unique combination of capital appreciation and periodic returns.
Eligibility Criteria for SGB Investors
Persons resident in India, as defined under the Foreign Exchange Management Act, 1999, are eligible to invest in Sovereign Gold Bond Scheme. This includes individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions. Even if an individual undergoes a change in residential status from resident to non-resident, they can continue to hold SGBs until early redemption or maturity.
Sovereign Gold Bond Upcoming Issues 2023
Sovereign Gold Bond Upcoming Issues: As per latest press release by RBI, Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds (SGBs) in tranches as per the calendar specified below:
Sovereign Gold Bond Scheme 2023-24 Series III
Sovereign Gold Bond 2023 Series 3 Date of Subscription
Sovereign Gold Bond Series 3 Date of Subscription: December 18 – December 22, 2023
Sovereign Gold Bond 2023 Series 3 Issue Date
Sovereign Gold Bond Series 3 Date of Issuance: December 28, 2023
Sovereign Gold Bond Scheme 2023-24 Series IV
Sovereign Gold Bond 2024 Series 4 Date of Subscription
Sovereign Gold Bond Series 4 Date of Subscription: February 12 – February 16, 2024
Sovereign Gold Bond 2024 Series 4 Issue Date
Sovereign Gold Bond Series 4 Date of Issuance: February 21, 2024
How to Purchase Sovereign Gold Bond
Sovereign Gold Bond Upcoming Issues Purchase: Acquiring Sovereign Gold Bonds has been made convenient through various channels. Interested individuals can apply for these bonds through their banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges such as the Bombay Stock Exchange and National Stock Exchange of India Limited. Online purchases can also be made through authorized commercial banks’ websites.
The process involves logging into the bank’s internet banking account, navigating to the ‘e-service’ option, selecting ‘Sovereign Gold Bond,’ and following the steps outlined for filling out the registration form and making the purchase.
Sovereign Gold Bond Price
Sovereign Gold Bond Price for Series 2
Previous tranche issued by Reserve Bank of India, Series II, with a subscription period from September 11–September 15, 2023, and issuance on September 20, 2023. Issue price per gram was Rs. 5923/-.
Investors making digital payments receive an additional discount of Rs. 50 per gram.
Sovereign Gold Bond Price for Series 3 & Series 4
Sovereign Gold Bond Upcoming Issues Price: Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less by ₹50 per gram for the investors who subscribe online and pay through digital mode.
Payment Option for Sovereign Gold Bond
Payment Options for Sovereign Gold Bond Upcoming Issues: Payment for the SGBs will be through cash payment (upto a maximum of ₹20,000) or demand draft or cheque or electronic banking.
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