Sovereign Gold Bond (SGB)
Investing in gold is now made easy through Sovereign Gold Bonds. SGBs are the perfect alternative to investing in physical gold. You can enjoy the capital gain benefit while also earning an interest of 2.50% p.a. Purchase your bonds digitally and enjoy an additional benefit of Rs.50/- discount per gram of gold.
Why Sovereign Gold Bonds?
- Eliminate various risks and inconveniences associated with physical gold, such as storage, risk of theft and purity issues.
- Enjoy capital appreciation linked to gold price movement.
- Additional benefit of 2.50% interest per annum paid in half yearly rest.
- Exemption from capital gain tax on redemption, if the bonds are held till maturity.
- Do away with making charges and Goods and Services Tax (GST) on investment.
- Tradable on stock exchanges from a date to be notified by the RBI.
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Issuance
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Issued by the Reserve Bank of India on behalf of the Government of India
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Eligibility
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Resident Individuals, HUFs, Trusts, Universities and Charitable Institutions are eligible to apply.
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Denomination
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Multiples of gram(s) of gold with a basic unit of 1 gram
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Tenor
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8 years with exit option from the 5th year onwards, on interest payment date
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Minimum Investment
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1 gram of gold
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Maximum Investment (Per fiscal year)
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Individual/HUF - 4 kg of gold
Trusts and similar entities - 20 kg of gold
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Joint Holding
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In case of joint holding, the investment limit of 4 kg will be applicable to the first applicant only.
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Mode of Holding
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Demat or paper form
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Issue Price
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Simple average of closing price of gold of 999 purity, published by the IBJAL, of the last 3 working days of the week preceding the subscription period
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Redemption Price
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The redemption price will be in Indian Rupees based on the simple average of closing price of gold of 999 purity, of the last 3 working days, as published by IBJAL.
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Interest Rate
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2.50% per annum payable semi-annually on the investment
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Tax Treatment
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Annual interest is taxable as per provisions of IT rules.
Capital Gain Tax is exempted if bonds are held till maturity.
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Tradability
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Bonds will be tradable on stock exchanges from a date to be notified by RBI.
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When can I apply for SGB?
The RBI announces the dates of SGB issues in tranches in advance. Whenever the issue is open, you can apply for and invest in SGBs.
The tranches from October 2021 to March 2022 is as follows.
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Sl.No
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Tranche
2021-22
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Period of Subscription
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Date of issuance
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Issue Price
(Rate per gram of gold)
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Tranche Status
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Offline rate
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Online rate
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1.
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Series VII
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October 25 to 29, 2021
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November 02,2021
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Rs.4,761/-
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Rs.4,711/-
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Open
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2.
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Series VIII
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November 29 to December 03, 2021
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December 07, 2021
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To be notified
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To be notified
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Up-coming
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3.
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Series IX
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January 10 to 14, 2022
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January 18, 2022
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To be notified
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To be notified
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Up-coming
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4.
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Series X
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February 28 to March 04, 2022
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March 08, 2022
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To be notified
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To be notified
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Up-coming
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How can I apply for SGB?
Applying online through our Internet Banking (SIBerNet) or Mobile Banking (SIB Mirror+) platforms will ensure a discount of Rs.50/- per gram of gold.
To invest on SIBerNet,
Log in to SIBerNet-->Investments-->Apply for Sovereign Gold Bond
To invest on SIB Mirror+,
Log in to SIB Mirror+-->Services & Requests-->Apply for Sovereign Gold Bond
You can also submit the SGB application form, along with a copy of your PAN and a cheque leaf, at any of our branches, to apply for Sovereign Gold Bond.
To find your nearest SIB branch, click here.
To download the SGB application form, click here.
For a detailed FAQ on SGB, click here.