The Centre on Friday said that the issue price for the Sovereign Gold Bonds 2023-24 (Series I) will be Rs 5,926 per gram. On June 14, the Centre notified that two tranches of gold bonds will be launched in the first half of FY24.
The first tranche, 2023-24 Series I, will be issued from June 19 and continue till June 23. The second issue, 2023-24 Series II, will be issued between September 11 and 15, 2023. The issuance date for Series I FY24 is June 27, while tranche II FY24 issuance date is September 20.
“In terms of Government of India Notification No.4(6)-B(W&M)/2023 dated June 14, 2023, Sovereign Gold Bonds 2023-24 (Series I) will be opened for subscription during the period June 19-23, 2023 with Settlement date June 27, 2023. The issue price of the Bond during the subscription period shall be Rs 5,926 per gram, as also published by RBI in their Press Release dated June 16, 2023,” the government notification said.
| Tranche | Date of Subscription | Date of Issuance | Issue price |
| 2023-24 Series I | June 19 - June 23, 2023 | June 27, 2023 | Rs 5,926 per gram |
| 2023-24 Series II | September 11-September 15, 2023 | September 20, 2023 | TBD |
The Centre first floated the Sovereign Gold Bond (SGB) Scheme in November 2015 to offer investors an alternative investment to physical gold. The gold bonds not only track the export-import value of the yellow metal, it also ensures transparency at the same time.
The RBI had fixed an issue price of Rs 5,611 per gram of gold in Q4 FY23. In the September-December 2022 quarter FY23, the central bank offered the issue price of Rs 5,409 per gram.
| Tranche | Subscription Period | Price offered |
| 2022-23 Series I | June 20-24, 2022 | Rs 5,041 per gram |
| 2022-23 Series II | August 22-26, 2022 | Rs 5,091 per gram |
| 2022-23 Series III | December 19-27, 2022 | Rs 5,409 per gram |
| 2022-23 Series IV | March 6-10 2023 | Rs 5,611 per gram |
| 2023-24 Series 1 | June 19-23, 2023 | Rs 5,926 per gram |
Discount on Sovereign Gold Bond Scheme
The notification further added that the Centre in consultation with the Reserve Bank of India (RBI) has decided to allow discount of Rs 50 per gram on the issue price to those investors who apply online and the payment is made through digital mode. For such investors, the issue price of gold bond will be Rs 5,876 per gram of gold.
How can you buy Sovereign Gold Bonds?
The SGBs will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges -- National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
How can you make the payments?
If investors make the investment online, they can pay through UPI.
For physical purchases of SGBs, the payment can be made through cash payment (up to a maximum of Rs 20,000) or demand draft or cheque.
Who all can buy SGBs?
As per the RBI rules, any resident of India under the Foreign Exchange Management Act, 1999 can invest in SGB. In case, an individual investor changes their residential status from resident to non-resident after purchasing the bond, he or she can still hold the book till early redemption/maturity.
How much can you invest?
One can buy SGBs in denominations of one gram of gold, and multiples. The minimum investment is one gram, while the maximum can be 4 kg for individuals and Hindu Undivided families (HUF).
For trusts, institutions, and other entities, the limit is 20 kg per fiscal year (April – March).
Can you break the bond midway?
The bond lock-in period is eight years, but investors can exit it after five years from the date of issue. But holding the bond until maturity can help investors avail tax benefits. If they sell it before the lock-in period, the tax will be applied on the period of holding. "The price for Series-I 2023-24 is fixed at Rs 5,926/gm. Investment in Sovereign Gold Bonds has helped the RBI raise over Rs 30,000 cr since its inception in November 2015. Investment in paper, digital gold provides high liquidity, eliminates storage costs, and is easier to sell than physical gold. Investment in SGBs comes with an interest coupon payable semi-annually. Gold prices have gained 18% in FY23, around 8% YTD. Also, SGB has posted double-digit gains since its inception in 2015. Gold prices have been trading near their all-time highs domestically as well as globally. The recent moves by the US Fed and RBI capped gains for gold, leading to softness in the prices. Moving forward, gold prices will be guided by the action of the central banks, DXY a possible chance of a recession in the US, and the geopolitical situation between Russia-Ukraine and China-Taiwan. Expectations of global central banks easing rates from CY24 onwards will provide support to the yellow metal," said Nish Bhatt, Founder & CEO, Millwood Kane International.
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