Sovereign Gold Bond

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. The Bond is issued by Reserve Bank on behalf of Government of India.

  • Minimum subscription is one gram & Maximum subscription 4 KG per individuals per fiscal year.
  • The tenure of the bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates.
  • The Bonds bear interest at the rate of 2.50% (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
  • The bonds will be available both in Demat and certificate of holding.

Capital Gain tax arising on redemption of SGB  to an Individual has been exempted. The indexation benefit will be provided to long term capital gain (LTCG) arising to any person on transfer of bonds.