Sovereign Gold Bond scheme(SGB)

Published Oct 17, 2024

Sovereign Gold Bonds (SGBs) are government securities denominated in multiples of grams of gold, serving as a substitute for investing in physical gold. To purchase these bonds, investors must pay the issue price to an authorized SEBI-registered broker. Upon redemption, the equivalent cash value is credited directly to the investor’s registered bank account.

These bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India and are traded on stock exchanges.

Key Features and Advantages:

  • Earn market returns on gold plus a fixed 2.5% annual interest on the invested amount.
  • Interest is credited semi-annually to the investor’s account, with the final interest payable upon maturity along with the principal.
  • Bonds carry a sovereign guarantee (backed by the Government of India) on both the redemption amount and interest.
  • Tradable on the National Stock Exchange of India (NSE).
  • Eliminates the risks associated with handling physical gold.
  • No Tax Deducted at Source (TDS) on interest payments.
  • Capital gains tax is exempt upon redemption.
  • Can be used as collateral for trading purposes.

 

Terms and Conditions:

  • Eligibility: All Indian residents are eligible to apply.
  • Quantity Limits: Minimum Quantity: 1 gram of gold and Maximum Quantity: 4000 grams (4 kg) of gold.
  • Demat Requirement: Bonds are held in dematerialized form; hence, a Demat account is mandatory.
  • Application Process: A scanned copy of the application form must be sent to support@stocko.in.
  • Allotment: Bonds will be allotted within a fortnight and can be verified under your holdings.
  • Application Details: Active and upcoming issues can be checked here

 

For further details click here


Frequently Read Articles

Still need help?

South Asian Stocks Ltd. : NSE Member Code 09073, BSE Member Code 6329, MCX Member Code : 55215 , NCDEX Member Code : 1233 NSDL : IN-DP-474-2020 . SEBI Registration No. INZ000164738
Compliance Officer: NSE,BSE,MCX,NCDEX,NSDL : Mr RK Jain , 011-40409999 support@stocko.in
Registered Office : 3rd Floor, Building No.5, Local Shopping Complex, Rishabh Vihar, Near Karkarduma Metro Station. East Delhi – 110092


For any complaints related to South Asian Stocks Ltd email at complaints@stocko.in
Please ensure you carefully read the risk Disclosure Document.
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective communication, Speedy redressal of the grievances