Understanding Sovereign Gold Bond

What is a Sovereign Gold Bond (SGB)?
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. The SGB offers a superior alternative to holdin...
Thu, 16 Dec, 2021 at 12:21 PM
What is the minimum and maximum limit for investment?
The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be one gram with a maximum limit of...
Thu, 16 Dec, 2021 at 12:21 PM
What is the rate of interest and how will the interest be paid?
The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to ...
Thu, 16 Dec, 2021 at 12:21 PM
What will I get on redemption?
On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the redemption price shall be based on the simple average of closing price of gold of 999...
Thu, 16 Dec, 2021 at 12:22 PM
How will I get the redemption amount?
Both interest and redemption proceeds will be credited to the bank account linked with the Demat account, furnished by the investor at the time of buying th...
Thu, 16 Dec, 2021 at 12:22 PM
Can I encash the bond anytime I want? Is premature redemption allowed?
Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after the fifth year from the date of issue on coupon payment da...
Thu, 16 Dec, 2021 at 12:23 PM
What are the tax implications on i) interest and ii) capital gain?
Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to ...
Thu, 16 Dec, 2021 at 12:23 PM
Can I trade these bonds?
The bonds are tradable from the date notified by RBI. (It may be noted that only bonds held in Demat form with depositories can be traded in stock exchanges...
Thu, 16 Dec, 2021 at 12:23 PM