RBI issues SGB on behalf of the Government of India. Buy SGB online and earn a fixed interest of 2.50% per annum. No making charges and alternative of physical gold.

1. Sovereign Gold Bonds
SGB

2. What is Sovereign Gold Bonds (SGB)?
● SGB are substitutes for holding physical gold.
● These are Government securities denominated in grams of gold and can purchase as
low as 1gm.
● The Bond is issued by Reserve Bank on behalf of Government of India. So it is a very
safe instrument.

3. Who can Invest in SGBs?
Indian Citizens residing in India- defined under the Foreign exchange Management Act,
1999 can invest in Sovereign gold bond. Following are considered as eligible investors to
finance in SGB:
● Individuals
● HUFs
● Education institutions- Universities
● Charitable organizations and trusts
Those investors who have eventually changed
their status from resident to non-resident and
are holding SGBs are still eligible to hold SGB
until early maturity/ exchange.

4. Benefits of Sovereign Gold Bonds (SGBS):
● No GST when purchase
● No Making Charges
● Assured Returns of 2.5% P.A.
● No Worry for Storage
● Liquidity - Tradable on stock exchanges
● Can use as collaterals for loans
● No Capital Gain Tax on Redemption
● Minimum 1 gram investment

5. What is the minimum and maximum limit for
investment?
● 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).
● 20 kg for trusts and similar entities notified by the government.

6. What is the price at which bonds are sold?
The bond's price is fixed and sold on the basis of a simple average of gold’s 999 purity
closing price which is announced by the Indian Bullion and Jewellers Association Ltd. for
the last 3 business days of the week- before the subscription period.

7. Who are the authorized agencies selling the SGBs?
Bonds are sold through offices or branches of:
1. Nationalized Banks
2. Scheduled Private Banks
3. Scheduled Foreign Banks
4. Designated Post Offices
5. Stock Holding Corporation of India Ltd (SHCIL)
6. Authorized stock exchanges either directly or through their
agents.

8. Can I Apply Online?
A customer can apply online through below link:
https://www.investmentz.com/sovereign-gold-bond-scheme
The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to
those investors applying online and the payment against the application is made through
digital mode.

9. Can I Get the Bonds in Demat Form?
Yes, the bonds can be held in demat account.
A specific request for the same must be made in the application form itself.
Till the process of dematerialization is completed, the bonds will be held in RBI’s books.
The facility for conversion to demat will also be available subsequent to allotment of the
bond.

10. Can I Trade these Bonds?
The bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds
held in demat form with depositories can be traded in stock exchanges)
The bonds can also be sold and transferred as per provisions of Government Securities
Act, 2006.
Partial transfer of bonds is also possible.

11. Maturity Benefits of SGB
At the time of maturity the investor will get:
● The market value of the gold
● Periodic interest

12. What is the Redemption Process?
1. The investor will be notified a month before the maturity period.
2. On the day of the SGB maturity, the matured amount will be credited to the bank
account based on the details available in the records.
3. In case of any change in the investor’s detail, e.g. change in the investor’s email ID,
account number; it has to be notified to the bank/ SHCIL/PO immediately.

13. Thank You
Visit https://www.investmentz.com/sovereign-gold-bond-scheme for more