Sovereign Gold Bond (SGB)
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.
Benefits of Sovereign Gold Bond (SGB)
The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.
Risks in investing in SGBs
There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.
Eligibility to invest in the SGBs
Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.
The application on behalf of the minor has to be made by his/her guardian.
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 subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March). In case of joint holding, the limit applies to the first applicant. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market. The ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions
Rate of interest
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 the bank account of the investor and the last interest will be payable on maturity along with the principal.
Authorized Agencies for selling the SGBs.
Bonds are sold through offices or branches of Nationalized Banks, Scheduled Private Banks, Scheduled Foreign Banks, designated Post Offices, Stock Holding Corporation of India Ltd. (SHCIL) and the authorized stock exchanges either directly or through their agents.
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Sovereign Gold Bonds Issue Praises (Tranche wise) as on |
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S No |
Series |
Issue price/unit |
|
1 |
2015-I |
2684 |
|
2 |
2016-I |
2600 |
|
3 |
2016-II |
2916 |
|
4 |
2016-17 Series I |
3119 |
|
5 |
2016-17 Series II |
3150 |
|
6 |
2016-17 Series III |
3007 |
|
7 |
2016-17 Series IV |
2943 |
|
8 |
2017-18 Series I |
2951 |
|
9 |
2017-18 Series II |
2830 |
|
10 |
2017-18 Series III |
2956 |
|
11 |
2017-18 Series IV |
2987 |
|
12 |
2017-18 Series V |
2971 |
|
13 |
2017-18 Series VI |
2945 |
|
14 |
2017-18 Series VII |
2934 |
|
15 |
2017-18 Series VIII |
2961 |
|
16 |
2017-18 Series IX |
2964 |
|
17 |
2017-18 Series X |
2961 |
|
18 |
2017-18 Series XI |
2952 |
|
19 |
2017-18 Series XII |
2890 |
|
20 |
2017-18 Series XIII |
2866 |
|
21 |
2017-18 Series XIV |
2881 |
|
22 |
2018-19 Series I |
3114 |
|
23 |
2018-19 Series II |
3146 |
|
24 |
2018-19 Series III |
3183 |
|
25 |
2018-19 Series IV |
3119 |
|
26 |
2018-19 Series V |
3214 |
|
27 |
2018-19 Series VI |
3326 |
|
28 |
2019-20 Series I |
3196 |
|
29 |
2019-20 Series II |
3443 |
|
30 |
2019-20 Series III |
3499 |
|
31 |
2019-20 Series IV |
3890 |
|
32 |
2019-20 Series V |
3788 |
|
33 |
2019-20 Series VI |
3835 |
|
34 |
2019-20 Series VII |
3795 |
|
35 |
2019-20 Series VIII |
4016 |
|
36 |
2019-20 Series IX |
4070 |
|
37 |
2019-20 Series X |
4260 |
|
38 |
2020-21, Series I |
4639 |
|
39 |
2020-21, Series II |
4590 |
|
40 |
2020-21, Series III |
4677 |
|
41 |
2020-21, Series IV |
4852 |
|
41 |
2020-21, Series V |
5332 |
|
42 |
2020-21, Series VI |
5117 |
|
43 |
2020-21, Series VII |
5051 |
|
44 |
2020-21, Series VIII |
5177 |
|
45 |
2020-21, Series IX |
5000 |
Documents Needed for Investment at designated Post Office
1. PAN Card Copy (Mandatory)
2. Aadhar Card Copy/Voter ID/Electricity Bill/Passport/Any other Address Proof
FORMS
Form-A - Application for Sovereign Gold Bond
Form-B - Acknowledgement for Sovereign Gold Bond
Form-C - Sovereign Gold Bond Certificate of Holding
Form-D- Sovereign Gold Bond Nomination Registration
Form-E- Sovereign Gold Bond Nomination Cancellation
Form-F Sovereign Gold Bond Transfer of Stock Certificate
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