The Central Government is set to release one installment of Sovereign Gold Bonds (SGB) this month in December, followed by another installment in February. Additionally, the dates for applying for Series III of SGB for investors are from December 18-22, 2023, and for Series IV, the dates are from February 12-16, 2024. The Reserve Bank of India (RBI) issues the SGB on behalf of the government. The membership dates for Series I were open during June 19-23, and for Series II, they were open during September 11-15.
Who Sells SGB? The Indian Reserve Bank (RBI) issues Sovereign Gold Bonds on behalf of the Indian government. SGB is sold through scheduled commercial banks (excluding small finance banks, payment banks, and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, National Stock Exchange, India Limited, and Bombay Stock Exchange Limited.
What is the Price of SGB? The price of SGB is determined in Indian Rupees. The India Bullion and Jewellers Association Limited (IBJA) set the price based on the average closing price of 999 purity gold in the last three working days of the week before the subscription period ends. The price is determined relative to the closing price of 999 purity gold. The price is fixed at a discount for investors applying online and making digital payments.
Online Investors Get SGB at a Lower Price According to the Ministry of Finance, the issue price of SGB for online subscribers and those making digital payments will be 50 rupees less per gram.
How Much SGB Can an Individual Purchase? According to the rules, the maximum limit for an individual’s subscription is 4 kilograms for individuals, 4 kilograms for Hindu Undivided Families (HUFs), and 20 kilograms per fiscal year for trusts and similar entities. The tenure of SGB is eight years, and redemption can be done on the maturity day of the eighth year.
