The Sovereign Gold Bond Scheme is a government-backed investment scheme that allows investors to buy gold at a discount. The current issue of Sovereign Gold Bond SGB 2023–24 Series II offers a discount of Rs. 5,873 per gram for investors applying online
Sovereign gold bond scheme full details:
| Description | |
|---|---|
| Security Name | SGB 2023–24 Series II |
| ISIN | IN0020230093 |
| Denomination | Units of 1 gram of gold and in multiples thereof. |
| Subscription Open | Sept 11, 2023 |
| Subscription Open | Sept 15, 2023 |
| Issue Price | Rs. 5,923/gram (Rs. 5,873/gram for investors applying online and the payment against the application is made through digital mode) |
| Minimum Investment | 1 gram |
| Maximum Investment | The maximum investment limit for individuals in sovereign gold bonds is 4 Kg , 4 Kg for HUFs, and 20 Kg for trusts and similar entities per fiscal year. |
| Issuance Form | The bond can be held either in Demat form or in physical form. |
| Settlement Date | September 20, 2023 |
| Interest | 2.50% (Fixed Rate) p.a. on the initial investment paid half-yearly. |
| Period for upload | E-Kuber portal will remain open for upload from September 11–September 18, 2023 (Monday to next Monday) |
| Maturity | 8 years |
| Redemption | The bonds shall be repayable at the expiration of 8 years from the date of issue. |
| Premature Redemption | from the 5th year of the date of issue on the interest payment dates. |
READ MORE: Ultimate Guide to Sovereign Gold Bond (SGB): Everything You Need to Know
FAQs on Sovereign Gold Bonds
How sovereign gold bond scheme work?
Sovereign Gold Bonds (SGBs) are government securities that are denominated in grams of gold. They are a substitute for holding physical gold. Investors pay the issue price in cash, and the bonds are redeemed in cash on maturity. The Reserve Bank of India issues the bonds on behalf of the Government of India.
SGBs have a tenure of eight years. Investors can exit after five years, subject to certain conditions. The minimum permissible investment is one gram of gold.
The government pays 2.5% fixed interest annually on the amount invested until maturity. The interest is paid twice a year on the nominal value. Returns are usually linked to the current market price of gold.
The maturity proceeds are credited to the bank account provided by the investor during the application process.
What happens after 8 years of sovereign gold bond?
Sovereign Gold Bonds (SGBs) mature after eight years. At maturity, the interest and redemption proceeds are credited to the bank account linked to the demat account. The maturity amount is in Indian Rupees (₹).
Where can I get SGB offer document online?
You can download Sovereign Gold Bonds SGBs offer document from RBI website
Read MORE: Comparison of Sovereign Gold Bonds (SGBs), Gold jewellery, and Physical gold
Disclaimer : This is not investment advice. The information provided above is for informational purposes only and should not be construed as an offer to sell or a solicitation of an offer to buy any securities. Investment in SGBs involves risks, and investors should carefully consider all risks before making an investment decision.