Sovereign Gold Bonds 2023-24 Series IV, which was opened for public subscription on February 12, is going to be closed today, February 16, 2024
Sovereign Gold Bonds Last Date: The Sovereign Gold Bonds 2023-24 Series IV, which was opened for public subscription on February 12, is going to be closed today, February 16, 2024. The issuance will take place on February 21, 2024. Here are key things you need to know about sovereign gold bonds.
The SGB 2023-24 Series III was opened for subscription in December 2023.
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Sovereign Gold Bonds 2023-24: Who Is Eligible To Buy?
The SGBs, which will be issued by the Reserve Bank of India on behalf of the government, will be restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions, according to the statement.
Sovereign Gold Bonds 2023-24: Price, Interest Rate Returns
Investors may purchase a unit of SGB for Rs 6,263, which is the price per gram.
Once issued, the SGB investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
Payment for the SGBs will be through cash payment (up to a maximum of Rs 20,000) or demand draft or cheque or electronic banking.
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Sovereign Gold Bonds 2023-24: Minimum Investment
The minimum permissible investment will be one gram of gold, while the maximum limit of subscription shall be four kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year (April-March) notified by the government from time to time.
Sovereign Gold Bonds 2023-24: Redemption
The redemption price will be in Indian Rupees based on a simple average of the closing price of gold of 999 purity, of the previous three working days published by IBJA Ltd.
Sovereign Gold Bonds 2023-24: Can It Be Used As Collateral For Loans?
The bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to the ordinary gold loan mandated by the Reserve Bank from time to time, the finance ministry said in the statement.
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Sovereign Gold Bonds 2023-24: Income Tax Applicability
“The interest on SGBs shall be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond. SGBs shall be eligible for trading,” it added.
How to buy Sovereign Gold Bonds (SGBs) online?
Step 1: First log in to your respective net banking account.
Step 2: From the main menu, select ‘e-Service’ and click on ‘Sovereign Gold Bond’.
Step 3: For new customers, select ‘Register’. Then read the terms and conditions set by the Reserve Bank of India (RBI), and proceed.
Step 4: Enter all required SGB scheme details as well as information about the depository participant from CDSL or NSDL, depending on where your demat account is hosted.
Step 5: Submit the online registration form.
Step 6: After registration, select the purchasing option from the header link/section or directly select ‘Purchase’.
Step 7: Enter your subscription quantity as well as nominee details.
Step 8: To complete the process, key in the one-time password (OTP) sent to your registered mobile number.
