Launched in November 2015, Sovereign Gold Bonds are government securities denominated in grams of gold. They serve as an alternative to physical gold. Issued by the RBI on behalf of the central government, SGB aims to reduce the demand for physical gold and promote savings.
Sovereign Gold Bond Scheme - Series I and II were open for subscription on June 19-23 and September 11-15 earlier this year, while Series IV will be open from February 12-16, 2024.
Here are five things to know about the latest Sovereign Gold Bond issue:
Issue price of SGB:
The SGB Series III 2023-24 price per gram is ₹6,199. Investors who subscribe to the SGB issue online and make the payment via digital mode will receive a discount of ₹50 per gram on the nominal value. SGB price per gram for online subscribers will be ₹6,149, the central bank said.
The price for SGBs is fixed based on an average of closing price of gold of 999 purity for the last three working days of the week preceding the beginning of the subscription day. Based on the average price of gold between December 13-15, the RBI has fixed the price.
Where to buy SGB:
Investors can purchase Sovereign Gold Bond Series III from all participating banks. They can also buy SBGs through the Stock Holding Corporation of India, Clearing Corporation of India, designated post offices, the National Stock Exchange (NSE), and BSE.
The maximum limit for the purchase of SGB:
As per the norms, the maximum limit of subscription is four kilograms for individuals and HUFs and 20 kilograms for trusts.
What return to expect on SGB:
The investors will receive a fixed return of 2.5%, which is paid semi-annually based on the nominal value.
The maturity period of SGB:
The Sovereign Gold Bond has an eight-year tenure, with the option of premature redemption after the fifth year to be exercised on the date on which interest is payable, as per the Ministry of Finance.
(Edited by : Sudarsanan Mani)
