The RBI Declare 2023-24 Series II Tranche price 5923 per gram(5873 FOR ONLINE and contact us to get Rs. 50 per unit discount), which will be open from subscription from 11 Sep 2023 to 15 Sep 2023. SGB Issuance date will be 19 Sep 2023. Subscribers will get discount for ₹ 50 per Gram. This is a best option to invest in gold for a longer period.
Sovereign Gold Bonds (SGB) 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 the Government of India.
Calendar for Sovereign Gold Bond Tranche Series II for F.Y. 2023-24
|Issuer||Issued by Government of India|
|Subscription Opens On||Monday 11 Sep 2023|
|Subscription Closes ON||Friday 15 Sep 2023|
|Date of Issuance||Tuesday 19 Sep 2023|
|Price of the Gold||₹ 5923/- Per Gram ( Rs. 5873/- Per Gram After Online Discount, Contact us to get discount)|
|Discount||₹ 50 per gm for online/digital payment (No Discount on Physical Application mode)|
|Bid Lot||1 Gram & in multiples thereafter|
|Minimum Application Size||The minimum permissible investment will be 1 gram of gold.|
|Maximum Application Size||Not be more than 4kg for individuals/HUFs and 20kgs for trusts per fiscal year.|
|Interest Payable||2.5% assured interest per annum on the investment payable semi-annually|
|Tenor||8 years with exit option after the 5th year of the date of issue|
|Listing||BSE / NSE|
Contact us to invest in Sovereign Gold Bond at email@example.com or 9887154423
General Details for Sovereign Gold Bond
|Issuer||Government of India via RBI|
|Bidding Lot||1 Gram and in multiple of 1 Gram thereafter|
|Minimum Application||Minimum Apply for 1 Gram|
|Maximum Application||4 Kg for Individual/HUF and 20 Kg For Trusts and similar Entities*|
|Discount||Rs. 50 per Gram for online/digital/Demat applications. No Discount Given on Physical Application.|
|Interest||2.5% Annually on the nominal Face Value, and payable half-yearly.|
|Tenor||8 years from the date of the issue of the bonds.|
Premature redemption may be permitted after the fifth year from the date of issuance.#
|Eligibility||Resident Individuals, HUFs, Trusts, Universities, Charitable Institutions and minors through their guardian.|
|Listing At||NSE and BSE Stock Exchanges.|
|Trading||The SGBs shall be eligible for trading on NSE and BSE Stock Exchanges.|
|Liquidity||Liquidity is available in the secondary market (NSE & BSE) for dematerialized holding. However, the liquidity of the past issues is quite low and restricted only to few tranches. Most of the past series of SGBs are trading at a discount price to the gold prices due to lack of liquidity and depth in the market.|
|Maturity/Redemption||On Maturity, The Gold Bonds shall be redeemed on a simple average of the closing price of gold 999 purity of the previous 3 working days, provided by India Bullion and Jewelers Association Limited.|
|Payment Mode||Cash Up to Rs. 20000/- or Demand Draft, Cheque, or Electronic Banking (Net Banking, UPI, NEFT RTGS Etc.)|
|Loan Against Bonds||Sovereign Gold Bonds (SGB) may be used as collateral security for availing any loan. The Loan Against SGBs would be subject to the decision of the bank or financing agency. and can’t be inferred as a matter of right.|
|Nomination||Yes, the nomination is available on SGBs.|
|TDS||TDS is not applicable to SGB’s interest/redemption.|
|Tax Treatment||Interest Income – Taxable as per the provisions of the Income Tax Act, 19961 (43 of 1961).|
On Maturity – The Capital Gain Tax will be exempted to an individual at end of the 8th Year.
Before 3rd Year – STCG will be applicable.
After 3rd and Before 8th Year – LTCG will apply with indexation benefit.
Key Features to invest in Sovereign Gold Bond
- Issued by Government of India.
- Earn 2.5% Assured Annual Interest Payable Half Yearly.
- No TDS Applicable.
- No Capital Gain Tax on 8th Year Final Maturity.
- Can be trade on Stock Exchanges (NSE & BSE)
- May be used as collateral for loans on banks/financer condition.
- Investor get indexation benefit on LTCG before maturity.
- SGB available both in demat and paper format.
- Best and safest way to invest in gold.
Comparison with other Gold Investment Instruments.
|Particular||SGB||Gold ETF||Physical Gold|
|Interest on Investment||Yes (2.5% Annually)||No||No|
|Return on Investment||Depend on Future|
|Depend on Future|
|Depend on Future|
|Brokerage on Buy||No||Yes||No|
|Exit/Redemption||After 5th Year*||Any time||Any Time|
|Tradability||Yes at NSE, BSE||Yes||on Gold Market|
|LIquidity||Limited||High Liquid||High Liquid|
|Insurance or Storage Charges||No||No||Yes|
|Quality Check Requres||No||No||Yes|
*If you hold your units in Demat format, you can sell your units on NSE BSE stock exchanges.
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