New concern of sovereign gold bond scheme to open subsequent week. Key issues to know

The federal government has determined to concern two tranches of sovereign gold bonds (SGBs) throughout the first half of the present monetary 12 months.

The date for subscription for 2023-24 Sequence I is June 19-23, 2023, whereas for Sequence II is September 11-15, 2023, a finance ministry assertion mentioned.

Sovereign gold bond scheme: Key issues to know


The SGBs will likely be restricted on the market to resident people, HUFs, Trusts, Universities, and Charitable Establishments.


The SGBs will likely be denominated in multiples of gram(s) of gold with a fundamental unit of One gram.


The tenor of the SGB will likely be for a interval of eight years with an choice of untimely redemption after fifth 12 months to be exercised on the date on which curiosity is payable.

Minimal measurement

The minimal permissible funding will likely be One gram of gold.

Most restrict

The utmost restrict of subscription shall be 4 Kg for people, 4 Kg for HUF, and 20 Kg for trusts and related entities per fiscal 12 months (April-March) notified by the Authorities once in a while. A self-declaration to this impact will likely be obtained from the traders on the time of constructing an software for a subscription. The annual ceiling will embody SGBs subscribed below totally different tranches, and people bought from the secondary market, throughout the fiscal 12 months.

Joint holder

Within the case of joint holding, the funding restrict of 4 Kg will likely be utilized to the primary applicant solely.

Concern value

The worth of SGB will likely be fastened in Indian Rupees on the premise of the straightforward common of the closing value of gold of 999 purity, revealed by the India Bullion and Jewellers Affiliation Restricted (IBJA) for the final three working days of the week previous the subscription interval. The problem value of the SGBs will likely be much less by 50 per gram for the traders who subscribe on-line and pay by way of digital mode.

Fee choice

Fee for the SGBs will likely be by way of money fee (as much as a most of 20,000) or demand draft or cheque or digital banking.

Issuance type

The SGBs will likely be issued as Authorities of India Inventory below Authorities Securities Act, 2006. The traders will likely be issued a Certificates of Holding for a similar. The SGBs will likely be eligible for conversion into demat type.

Redemption value

The redemption value will likely be in Indian Rupees primarily based on a easy common of the closing value of gold of 999 purity, of the earlier three working days revealed by IBJA Ltd.

Rate of interest

The traders will likely be compensated at a set price of two.50 p.c each year payable semi-annually on the nominal worth.


The SGBs can be utilized as collateral for loans. The loan-to-value (LTV) ratio will likely be as relevant to any unusual gold mortgage, mandated by the Reserve Financial institution once in a while.

KYC documentation

Know-your-customer (KYC) norms would be the identical as that for the acquisition of bodily gold. KYC paperwork corresponding to Voter ID, Aadhaar card/PAN, or TAN /Passport will likely be required. Each software should be accompanied by the ‘PAN Quantity’ issued by the Earnings Tax Division to people and different entities.

Tax therapy

The curiosity on SGBs shall be taxable as per the availability of the Earnings Tax Act, 1961 (43 of 1961). The capital features tax arising on redemption of SGB to a person is exempted. The indexation advantages will likely be supplied to long-term capital features arising to any individual on switch of the SGB.


SGBs shall be eligible for buying and selling.

The SGBs will likely be offered by way of Scheduled Business banks (besides Small Finance Banks, Fee Banks, and Regional Rural Banks), Inventory Holding Company of India Restricted (SHCIL), Clearing Company of India Restricted (CCIL), designated submit workplaces, and recognised inventory exchanges — Nationwide Inventory Change of India Restricted and Bombay Inventory Change Restricted, it mentioned.


Catch all of the Enterprise Information, Market Information, Breaking Information Occasions and Newest Information Updates on Stay Mint. Obtain The Mint Information App to get Day by day Market Updates.
Extra Much less

Up to date: 15 Jun 2023, 09:21 AM IST