The news is by your side.

Sovereign Gold Bond: Scheme 2023-24 opens next week. Should you apply?


The government has decided to issue two tranches of sovereign gold bonds (SGBs) during the first half of the current financial year. The first tranche will be available by subscription from 19-23 June and the second tranche will open from 11-15 September

The price for I-League 2023-24 has been set at 5,926/gm. Investment in Sovereign Gold Bonds has helped the RBI to step up 30,000 cr since its inception in November 2015, said Nish Bhatt, Founder & CEO, Millwood Kane International.

The opening of the Sovereign Gold Bond scheme for subscription by retail investors offers a unique opportunity to invest in gold as an asset class. With the option to buy as little as one gram of gold and a maximum of four kilograms, investors can participate in this regulated and secured investment avenue. “The dematerialized form of the bonds allows for convenient holding in a displacement account, eliminating concerns about impurities and deductions often associated with physical gold. The securitization of these bonds against 99.9% pure gold held by the Reserve Bank of India ensures that investors will receive the full value of the gold upon redemption in the eighth year, without any deductions,” said Abhijit Roy, CEO, GoldenPi.

Should you invest?

Investing in paper, digital gold provides high liquidity, eliminates storage costs, and is easier to sell than physical gold. The attractive offer extends further, with retail investors able to receive an annual interest of 2.5% on their investment until the maturity of the bonds. In addition, there is a discount of 50 on every gram of gold applied by an applicant through the online mode and pays digitally (Network Banking, NEFT, UPI etc.). “Investment in SGBs comes with an interest coupon payable semi-annually. “SGB has posted double-digit gains since its inception in 2015,” said Nish Bhatt.

Benefits of SGB

The liquidity of these bonds is facilitated by their listing on exchanges, allowing investors to redeem them from the fifth year onwards. One of the most significant advantages of this asset class is the complete exemption from taxation on capital gains realized after eight years of maturity.

Should retail investors go for SGB?

According to Abhijit Roy, CEO, GoldenPi, this scheme offers retail investors a secure, interest-bearing investment in gold, allowing them to diversify their portfolios and tap into the long-term potential of this precious metal. With easy access, assurance of purity, interest earnings, and tax benefits, the Sovereign Gold Bonds scheme offers an attractive opportunity for investors looking to tap into gold’s potential as a long-term investment.

Where can investors buy SGB?

– Scheduled Commercial Banks (other than Small Finance Banks, Payments Banks, and Rural Regional Banks), Stock Holding Corporation of India Limited (SHCIL),

-Clearing Corporation of India Limited (CCIL),

—Designated post offices (as notified) and

-Identified stock exchanges directly or through agents.

Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News App for Daily Market Updates.


Updated: 17 June 2023, 01:49 PM IST

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at The content will be deleted within 24 hours.

Read original article here

Leave A Reply

Your email address will not be published.