
The Sovereign Gold Bonds 2023-24 Series IV will be available for public subscription from February 12 to February 16, 2024. The bonds will be issued on February 21, 2024.
Subscription Details
- The previous series, SGB 2023-24 Series III, was open for subscription in December 2023.
How to Purchase SGBs
- SGBs will be sold through various channels such as scheduled commercial banks, designated post offices, and recognized stock exchanges.
- The issuance will be handled by the Reserve Bank of India (RBI) on behalf of the government.
- Eligible buyers include resident individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions.
Interest Rate and Price Determination
- Investors will receive a fixed interest rate of 2.50% per annum, paid semi-annually.
- The price of SGB will be determined based on the average closing price of gold published by the India Bullion and Jewellers Association Limited (IBJA) for the preceding three working days.
Payment and Investment Limits
- Payment for SGBs can be made in cash (up to Rs 20,000), demand draft, cheque, or electronic banking.
- The minimum investment allowed is one gram of gold, with maximum limits specified for different entities.
Bond Features
- SGBs will be denominated in multiples of grams of gold, with a basic unit of one gram.
- The tenure of the bonds will be eight years, with an option for premature redemption after the fifth year.
- Bonds will be issued as Government of India Stock and will be eligible for conversion into demat form.
Redemption and Loan Collateral
- The redemption price will be based on the average closing price of gold published by IBJA Ltd.
- SGBs can be used as collateral for loans, with loan-to-value ratios set according to RBI regulations.
Taxation and Trading
- Interest earned on SGBs will be taxable as per the Income Tax Act, 1961.
- Capital gains tax on redemption is exempted for individuals, and indexation benefits will be provided for long-term capital gains.
- SGBs will be eligible for trading.
How to purchase SGB?
- Log in to your net banking account.
- Navigate to ‘e-Service’ and select ‘Sovereign Gold Bond’.
- If you’re a new customer, register by accepting the terms and conditions.
- Fill in the required SGB scheme details and information about your depository participant.
- Submit the online registration form.
- Select the purchase option, enter subscription quantity and nominee details.
- Complete the process by entering the one-time password (OTP) sent to your registered mobile number.