SGB 2023-24: New issue of sovereign gold bond scheme announced. Check issuance date, eligibility, lock-in period

The Centre has decided to launch the next series of Sovereign Gold Bonds (SGBs) for this financial year. The government has decided to issue two tranches of gold bonds in the first half of the current financial year. 

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, Reserve Bank of India (RBI) said in a statement. The issuance date for Series I is June 27, while tranche II issuance date is September 20, the RBI notification said. 

Tranche	Date of Subscription	Date of Issuance
2023-24 Series I	June 19 - June 23, 2023	June 27, 2023
2023-24 Series II	September 11-September 15, 2023	September 20, 2023

SGBs, or Sovereign Gold Bonds, are issued by the RBI on behalf of the Centre as an alternative to buying physical gold. The SGB scheme was launched by the Government in November 2015, under Gold Monetisation Scheme. The gold bonds are restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions. 

Here are some crucial points one should note:

1. 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.

2. It is to be noted that Small Finance Banks, Payment Banks and Regional Rural Banks won't be selling these bonds.

3. The SGBs are sold and denominated in multiples of gram(s) of gold with a basic unit of One gram.

4. The bond maturity period is 8 years. Though investors have an option of premature redemption after 5th year to be exercised on the date on which interest is payable.

5. There is an investment limit. The minimum permissible investment limit is one gram of gold. The maximum limit of subscription is 4 Kg for individuals, 4 Kg for HUF, and 20 Kg for trusts and similar entities per fiscal year (April-March).

6. The issue price of SGB will be fixed in Indian rupees on the basis of the simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period.

7. The issue price of the SGBs will be less by Rs 50 per gram for the investors who subscribe online and pay through digital mode.

8. The investors will be offered a fixed interest rate of 2.50 per cent per annum payable semi-annually on the nominal value.

9. The redemption price will be in Indian rupees based on a simple average of closing price of gold of 999 purity, of previous three working days published by IBJA Ltd.

10. The gold bonds can be used as collateral for loans. The loan-to-value (LTV) ratio will be as applicable to any ordinary gold loan, mandated by RBI from time to time.

11. The SGBs are issued as Government of India Stock under the Government Securities Act, 2006. The investors will be issued a Certificate of Holding for buying the gold bonds. The SGBs will be eligible for conversion into demat form.

12. The interest on SGBs shall be taxable as per the provision of 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 the SGB.

"The Sovereign Gold Bond scheme, issued by the Reserve Bank of India, offers retail investors a secure and lucrative investment opportunity. Backed by 99.9% pure gold held by the RBI, these bonds provide one of the safest avenues for investment. Since its launch in November 2015, the scheme has garnered immense popularity, with a total investment of approximately 27 tons of gold worth Rs 12,911 crore. Investors can benefit from the liquidity of these bonds, as they can be sold on the exchange after the 5th year. The cherry on top is the complete exemption from taxation on the capital gains realized upon maturity of these gold bonds," said Abhijit Roy, CEO, GoldenPi

Watch: Triumph Street Triple 765 Price Revealed: Check out colours, features and rivals like Ducati Monster, Kawasaki Z900, BMW F 900 R

Watch: Baba Ramdev-owned Patanjali Foods launch premium products, Patanjali aims to earn Rs 1 lakh crore revenue in 5 years

Watch: MS Dhoni's mother-in-law Sheila Singh heads business worth Rs 800 crore; Sakshi Dhoni’s business ventures, know all about the mother-daughter duo

Watch: Buzzing stocks on June 16, 2023: Ashok Leyland, HDFC Life, Kalyan Jewellers, IKIO Lighting, others

Watch: Karan Deol’s pre-wedding celebration: Sunny Deol dances at son’s Roka Ceremony before Gadar 2's release. From Karan’s fiancée Drisha Acharya to their mehendi, haldi, wedding, reception, know details

Watch: Cyclone Biparjoy landfall updates: 2 reportedly dead, more than 22 injured in Gujarat; Maharashtra, Rajasthan on high alert

Watch: Avtar Singh Khanda - Khalistani leader and Amritpal Singh's handler dies of suspected poisoning; know about UK-based bomb expert

Watch: Buzzing stocks on June 15, 2023: Cravatex, VBL, Bharat Dynamics, Lokesh Machines, others

Watch: 2023 Hero Xtreme 160R 4V launched: Check out price, upgrades, variants and rivals like TVS Apache RTR 160 4V, Bajaj Pulsar N160

Watch: Radhe Maa, tailor-turned-self-styled godwoman’s mini-satsang at Mumbai airport for stranded Air India passengers due to Cyclone Biparjoy; Know more about her

Also read: Reliance Power, Suzlon Energy, Urja Global, Vodafone Idea shares see high volumes on NSE

Also read: Vakrangee shares rebound 7% as stock trades ex-demerger